431.37 USD Thai supplier’s offer = 3,000,000 THB / (41.25 THB/USD) = 72,727.27 USD The value of the deal is $78,431 – 72,727 = $5704 today. 3-3. a. Stock bonus = 100 × $63 = $6,300 Cash bonus = $5,000 Since you can sell (or buy) the stock for $6,300 in cash today, its value is $6,300 which is better than the cash bonus. b. Because you could buy the stock today for $6,300 if you wanted to, the value of the stock bonus cannot be more than $6,300. But if you are not allowed to sell the company’s…
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