Question
a firm is issuing bonds with warrants. Someone buying 1 package would receive a 6% coupon interest rate, 20-year bond plus 10 warrants. Each warrant
a firm is issuing bonds with warrants. Someone buying 1 package would receive a 6% coupon interest rate, 20-year bond plus 10 warrants. Each warrant is with $30 strike price and 10 vears maturity.
Currently cach warrant's value is estimated to be $5.
Stock share price is estimated to be $50 after 10 vears.
What is the cost for the firm to issue warrant in rate (cost of warrant rW?
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Provider Audit In England Evaluating Medical Audit
Authors: James Buttery, Yvette; Walshe, Kieran; Rumsey, Moira; Amess, Moyra; Bennett, Jennifer & Coles
1st Edition
1898845034, 978-1898845034
