**NEED HELP WITH PART B**

Maese Industries Inc. has warrants outstanding that permit the holders to purchase 1 share of stock per warrant at a price of $24. a. Calculate the exercise value of a warrant at each of the following common stock prices: (1) $20,(2)$25,(3)$30,(4)$100. (Hint: A warrant's exercise value is the difference between the stock price and the purchase price specified by the warrant if the warrant were to be exercised.) If your answer is zero, enter " 0 ". Round your answers to the nearest dollar. (1) $20$ (2) $25$ (3) $30$ (4) $100$ b. Assume the firm's stock now sells for $20 per share. The company wants to sell some 20 -year, $1,000 par value bonds with interest paid annually. Each bond will have warrants, each exercisable into 1 share of stock at an exercise price of $25. The firm's straight bonds yield 9%. Assume that each warrant will have a market value of $3.75 when the stock sells at $20. What coupon interest rate must the company set on the bonds with warrants if they are to clear the market? (Hint: The convertible bond should have an initial price of $1,000.) Do not round intermediate calculations. Round your answer to two decimal places. 3% What dollar coupon must the company set on the bonds with warrants if they are to clear the market? (Hint: The convertible bond should have an initial price of $1,000.) Do not round intermediate calculations. Round your answer to the nearest dollar. $