What Is the Equity Value of the Company Given the Following

question 11

Multiple Choice

What is the equity value of the company given the following information?
Current share price: $40.00
Basic shares outstanding: 400.0mm
50.0mm options outstanding with an exercise price of $20.00
5.0mm warrants with an exercise price of $45.00

• A)$1,600.0mm
• B)$1,500.0mm
• C)$1,700.0mm
• D)$1,625.0mm

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and salaries for management, not directly involved in the production.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including materials, labor, and overhead.

Schedule of Cost

A detailed statement that shows the various costs associated with the production of goods or provision of services during a specific period.

Raw Materials

The basic materials from which products are made, often processed or combined with other materials in the production process.