=+P1718 Common stock versus warrant investment Hans Gruber is evaluating BMW Groups common stock and warrants to

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=+P17–18 Common stock versus warrant investment Hans Gruber is evaluating BMW Group’s common stock and warrants to choose the better investment. The company’s stock is currently selling for €94.68 per share, while its warrants to purchase five shares of common stock at €20 per share are selling for €10. Ignoring transaction costs, Mr.

Gruber has €10,000 to invest. He is generally optimistic about BMW since the company is investing heavily in new electric cars.

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Principles Of Managerial Finance

ISBN: 9781292261515

15th Global Edition

Authors: Chad J. Zutter, Scott Smart

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