Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pace Western Crystal, Inc. has 10 million shares of common stock outstanding and 200,000 warrants. Each warrant entitles the holder to purchase 5 shares of

Pace Western Crystal, Inc. has 10 million shares of common stock outstanding and 200,000 warrants. Each warrant entitles the holder to purchase 5 shares of common stock at a price of $15 per share. Warrant holders exercised all of their warrants today. The market value of Pace Western’s assets before the exercise was $170 million. What should the new stock price be after the exercise?

Step by Step Solution

3.40 Rating (150 Votes )

There are 3 Steps involved in it

Step: 1

Solution Total warrants 200000 Each warrant 5 shar... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Financial Management

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

10th Edition

978-0324289114, 0324289111

More Books

Students also viewed these Accounting questions

Question

Explain how to transform sin tan + cos into sec.

Answered: 1 week ago