However, there is a chance that the stock price will actually be $10.00 per share one year from now. If the $10 price occurs, what would the present value of the entire underwriting compensation be?

If the inventory worth is $10.00 per share one 12 months from now, then the current worth of your entire underwriting compensation can be $270,000 (2,700,000 × 0.1). It is because it’s essential low cost the anticipated future money flows again to their present-day worth in an effort to get an correct image of how a lot they’re actually price—taking into consideration issues like inflation or completely different curiosity/low cost charges over time and so forth.

Thus no matter what occurs with reference to inventory worth in future, this calculation will stay unchanged so long as all different parameters (e.g., charges related to underwriting) stay fixed.