The capital structure of Ricketti Enterprises plc consists of 10 million shares of equity and 1 million

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The capital structure of Ricketti Enterprises plc consists of 10 million shares of equity and 1 million warrants. Each warrant gives its owner the right to purchase one share of equity for an exercise price of £15. The current share price is £17, and each warrant is worth

£3. What is the new share price if all warrant holders decide to exercise today?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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Question Posted: Feb 22, 2024 03:02 AM

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The capital structure of Ricketti Enterprises plc consists of 10 million shares of equity and 1 million

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To determine the new share price we need to first calculate the total number of shares that will be ...View the full answer

Corporate Finance

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