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Hawkins Lab and Tech is a firm with 100 million shares outstanding. Current share price is...

Hawkins Lab and Tech is a firm with 100 million shares outstanding. Current share price is $20/share. The firm has $1,000 mm in debt outstanding, $500 mm in excess cash and 20 million employee stock options. The value of the options is $5/share. Assuming the firm is fairly priced, what is the estimated value of the firm’s operating assets.

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Expert Solution

Operating Assets = Operating Assets are those assets that are used and required in daily operation activites of a business. Operating assets are used to generate revenue from a company main business activites.

Examples of Operating assets are ;- Inventory, Trade receivables, Trade paybles, Building, machinery, plant and equipment,patent, copywrite etc.

Therefore, the Value of Firm's Operationg assets as per above question is = Value of Cash = $500mm

jeff jeffy answered 1 year ago
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