General

Amount invested
Stock price (yesterday's close)
Stock price (current)

$5,000,000,000
$6.99
$7.82

Preferred
Preferred shares
Preferred face per share
Total preferred face
Coupon
Discount rate
Preferred method
Preferred term (3-30 years)
Preferred redemption (% of par)
Preferred value

50,000
$100,000
$5,000,000,000
6.00%
8.25%
Perpetuity
<-- "Term" or "Perpetuity"
10 <-- if using "Term"
105%
$3,636,363,636

Warrants
Number of warrants
Strike
Maturity (years)
Risk-free rate
Quarterly dividend
Borrow cost
Volatility
Warrant value implied by pref
Pref implied value per warrant

700,000,000
$7.1429
10
2.24%
$0.01
0.25%
35.00%
$1,363,636,364
$1.9481

Goalseek to find implied spot

Set this cell:
Equal to this value:
By changing this cell:

$1.9462
$1.9481
$5.28

Spot
Strike
Years
Risk-free rate
Div (quarterly)
Div yield
Borrow cost
Vol

Initial
$6.99
$7.14
10.0
2.24%
$0.01
0.57%
0.25%
35.00%

Current
$7.82
$7.14
10.0
2.24%
$0.01
0.51%
0.25%
35.00%

Black-Scholes
rate term
d1
d2
N(d1)
N(d2)
Call price
Put price

1.42%
0.6619
-0.4448
0.7460
0.3282
3.1800
2.3887

1.48%
0.7688
-0.3380
0.7790
0.3677
3.8264
2.1675

1.23%
0.3917
-0.7151
0.6524
0.2373
1.9462
2.9808

$3.1800
$2,226,018,222
$5,862,381,859
$862,381,859

$3.8264
$2,678,468,976
$6,314,832,612
$1,314,832,612

$1.9462
$1,362,310,990
$4,998,674,627
$(1,325,373)

Calculated price per warrant

Total warrant value
Total value of package
Buffet's "profit"

Fair
$5.28
$7.14
10.0
2.24%
$0.01
0.76%
0.25%
35.00%

Preferred term valuation

Maturity (years)
10
Value
$4,366,706,217
Year
1
2
3
4
5
6
7
8
9
10

Interest
Discounted
Redemption
$300,000,000
$277,136,259
$300,000,000
$256,015,020
$300,000,000
$236,503,482
$300,000,000
$218,478,967
$300,000,000
$201,828,145
$300,000,000
$186,446,324
$300,000,000
$172,236,789
$300,000,000
$159,110,197
$300,000,000
$146,984,016
$300,000,000
$135,782,001
$5,250,000,000

Discounted

$2,376,185,017