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BSOP

This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.

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November 12, 2014 at 5:38 pm #209425
stacie395
Participant
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hi sir, will question ever test us on valuation of firm using BSOP model…?…
thanx…
November 12, 2014 at 6:22 pm #209449
John Moffat
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- Topics: 57
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It could do 🙂
November 12, 2014 at 6:48 pm #209468
stacie395
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- Topics: 39
- Replies: 54
Hi sir, a bit confused on how to use BSOP model to derive at value of firm. Read across some books and saw that the equity value is the value of the call option, and the debt value is the redemption sum at maturity…is this the case…?
November 12, 2014 at 6:58 pm #209474
John Moffat
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- Topics: 57
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That is correct
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