Warrants The capital structure of Ricketti Enterprises, Inc., consists of 10 million shares of common stock and

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Warrants The capital structure of Ricketti Enterprises, Inc., consists of 10 million shares of common stock and 1 million warrants. Each warrant gives its owner the right to purchase one share of common stock for an exercise price of $15. The current stock price is $17, and each warrant is worth $3. What is the new stock price if all warrant holders decide to exercise today?

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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