222) Suppose an all-equity firm has a value of $10,000 and 100 shares outstanding. The firm has issued 25 warrants, each of which may be exchanged for one share. The warrants have an exercise price of $75. If the firm will be worth $9,800 in one period (before exercise), what will the price of the shares be assuming the warrants are exercised? A) $96.00 B) $88.20 $91.60 D) $93.40 E) $98.40 Answer: D 223) What is the straight bond value? A) S867.39 B) $939.00 Answer: D C) $983.64 D) $1.034.32 E) $778.43 224) What is the conversion value if the current stock price is $69.50? A) S1,034.32 B) S867.39 C) $939.00 D) $778.43 Answer: E E) S1,070.30 222) Suppose an all-equity firm has a value of $10,000 and 100 shares outstanding. The firm has issued 25 warrants, each of which may be exchanged for one share. The warrants have an exercise price of $75. If the firm will be worth $9,800 in one period (before exercise), what will the price of the shares be assuming the warrants are exercised? A) $96.00 B) $88.20 $91.60 D) $93.40 E) $98.40 Answer: D 223) What is the straight bond value? A) S867.39 B) $939.00 Answer: D C) $983.64 D) $1.034.32 E) $778.43 224) What is the conversion value if the current stock price is $69.50? A) S1,034.32 B) S867.39 C) $939.00 D) $778.43 Answer: E E) S1,070.30