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Eastern Shore Merchants has 75,000 shares and 50,000 warrants currently outstanding. A warrant holder can purchase one new share of stock in exchange for four
Eastern Shore Merchants has 75,000 shares and 50,000 warrants currently outstanding. A warrant holder can purchase one new share of stock in exchange for four warrants plus $20. The stock is currently selling for $20.60 per share. What would be the gain per new share from exercising the warrants, assuming all warrants are exercised?
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