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b) Impiana Rian Berhad has 200,000 shares and 20,000 warrants outstanding. A warrant holder can purchase a new share of stock for five warrants and

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b) Impiana Rian Berhad has 200,000 shares and 20,000 warrants outstanding. A warrant holder can purchase a new share of stock for five warrants and RM5.00 per warrant. The stock is currently selling for RM27 per share. The holder of a RM 1,000 face value bond can exchange the bond any time for 25 shares of stock. From the above information: i. Calculate the conversion price. (2 marks) ii. If all warrants are exercised, what will your percentage of ownership be if you owned 30,000 shares originally? (2 marks) iii. If the warrants are all exercised immediately, what would be the market price of the stock? (4 marks) iv. What would your gain be from exercising the warrants, assuming all are exercised? (3 marks) I (Total: 25 marks)

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