13.10 You are familiar with two approaches to the valuation of warrants. One approach uses present value

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13.10 You are familiar with two approaches to the valuation of warrants. One approach uses present value analysis and exit values to price warrants given as equity kickers in leveraged capitalizations. The second approach uses option-pricing theory (a modified version of the Black-Scholes formula) to price the warrants. What is the relationship between these two

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