17.8K/s 101.78 5:12 PM Given the following case, answer questions 14 to 16 below: Morina Restois family owned restaurant chain established 10 years ago in Rome, Italy It currently has 5 million shares outstanding. Although Morina Resto has done well the firm's founder believes that an industry shakeout is imminent. To survive, Morina Resomust grab market share now, and this will require a large infusion of new capital Mr. Georges Morina, the Chief Executive Officer (CEO) expects earnings to continue rising sharply and looks for the stock price to follow suit, thus, he does not think it would be wise toime new common stock at this time. On the other hand, interest rates are currently high by historical standeeds, the interest payments on a new debt issue would be prohibitive. Therefore, he has chosen to finance the needed capital using bonds with w Mr. Morina estimates that Marina Reito could issue 100.000 boods-with- was packages consisting of a 20-year bead and 30 wamats. Each wamat would have a strike price of S29 and 15 years until expiration. It is estimated that each warrant, when detached and traded separately, would have a value of SS. The coupon ce a similar bood but without wars would be 10% 14. What coupon rate should be set on the bond with warrants if the total package is to sell for $1,000?* 7.52% 8.23% 8.03% 9.52% None of the above U OK/s 101 B) 5:12 PM 15. How much cash will Morina Resto. receive when the warrants are exercised? * $50.23 million $65.32 million $29.00 million $87.00 million None of the above 16. How many shares of stock will be outstanding after the warrants are exercised? * 3 million shares 3.5 million shares 5.8 million shares 8 million shares O None of the above U