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On February 10, 2003, Gamma Inc. (a hypothetical company) issued 372,522,169 million 7% bonds with maturity of 10 years at 102%. Accompanying each $1,000 bond
On February 10, 2003, Gamma Inc. (a hypothetical company) issued 372,522,169 million 7% bonds with maturity of 10 years at 102%. Accompanying each $1,000 bond were 18 warrants. Each warrant permitted the holder to buy one share of $2 par common stock at $21/share. Suppose that 52% of the warrants are exercised as soon as prices of Gamma Inc. share reaches to $25. What will be the amount of share capital raised by the company only through new stock issuance resulting from warrants exercise?
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