Use your Black-Scholes option pricer to calculate the implied debt-equity correlationof Eurotunnel if its market value of equity was GBP 130.71 MM instead of GBP 150MM. (Hint: Since volatility is a function of correlation you will need to create thatfunction and then use Goal Seek to find the correlation that causes your equity price tomatch the market price of equity.)

On january 1, 2017, pharoah company issued 10-year, $2,020,000 face value, 6% bonds, at par. each $1,000 bond is convertible into 16 shares of pharoah common stock. pharoah’s net income in 2017 was $317,000, and its tax rate was 40%. the company had 97,000 shares of common stock outstanding throughout 2017. none of the bonds were converted in 2017. (a) compute diluted earnings per share for 2017. (round answer to 2 decimal places, e.g. $2.55.) diluted earnings per share