Problem 1. Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,500 per year for the next 10 years. What is the present value of this cash flow? Use an 11% discount rate
Problem 2. The intrinsic value of a warrant to buy 5 share of Merton stock at $55 per share is $20. What is the current market price of Merton Stock?