Skip to content
Sign inRegister
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA AFM

BSOP

Sstacie39511y ago
hi sir, will question ever test us on valuation of firm using BSOP model...?... thanx...
John MoffatJohn MoffatTutor11y ago#1
It could do :-)
Sstacie39511y ago#2
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...?
John MoffatJohn MoffatTutor11y ago#3
That is correct
Sign in to reply to this topic.