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BSOP

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › BSOP

  • This topic has 3 replies, 2 voices, and was last updated 11 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 12, 2014 at 5:38 pm #209425
    Avatarstacie395
    Participant
    • Topics: 39
    • Replies: 54
    • ☆☆

    hi sir, will question ever test us on valuation of firm using BSOP model…?…

    thanx…

    November 12, 2014 at 6:22 pm #209449
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    It could do 🙂

    November 12, 2014 at 6:48 pm #209468
    Avatarstacie395
    Participant
    • 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
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    That is correct

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