am. 128. 2. You have been asked to analyze three technology companies and have been providedwith the following information on the companies:CompanyZap TechInfoRockLo SoftwarePrimarysharesNumber ofOptionsValue peroutstandingPrice/shareNet IncomeOutstanding option100$20$10010$10.00500$6$15080$1.5080$5$2020$0.50Assuming that the three companies have the same expected growth rate in net incomeand share the same return on equity and cost of equity, which of the three companieswould you consider the cheapest? Explain why.

ParticularsZap TechInfo RockLo SoftwarePrice/share (a)$20$6$5Number of O/s shares (b)10050080Market…

2. You have been asked to analyze three technology companies and have been provided with the following information on the companies: Primary shares Company Zap Tech outstanding Price/share Net Income Number of Options Outstanding Value per option 100 $20 $100 10 $10.00 InfoRock 500 $6 $150 80 $1.50 Lo Software 80 $5 $20 20 $0.50 Assuming that the three companies have the same expected growth rate in net income and share the same return on equity and cost of equity, which of the three companies would you consider the cheapest? Explain why.