19.12. Gordon Wu (the largest shareholder of Hopewell) has just announced that he is planning to issue

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19.12. Gordon Wu (the largest shareholder of Hopewell)

has just announced that he is planning to issue outof-

the-money covered warrants on 10 percent of Hopewell’s outstanding stock. Does this announcement make you more or less optimistic about Hopewell’s future profits? Does it affect your assessment of Hopewell’s volatility?

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Related Book For  book-img-for-question

Financial Markets And Corporate Strategy

ISBN: 9780071157612

2nd Edition

Authors: Mark Grinblatt, Sheridan Titman

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