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B4 Incorporation, a hypothetical company, issued $5 million of 5% bonds on June 1, 2003 which are due in 10 years. At the time of
B4 Incorporation, a hypothetical company, issued $5 million of 5% bonds on June 1, 2003 which are due in 10 years. At the time of issuance, the bonds were quoted 102 in the market. Accompanying each $1,000
bond were 10 warrants. Each warrant permitted the holder to buy one share for S0.5 par common stock at $15 per share. Suppose that 60% of the warrants were exercised when market price of 84 incorporation
share was $18 How much share capital company will raise due to warrant exercise of the warrant holders?
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