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Outer Wear has 12,000 shares of stock outstanding. Each share has a .5 warrant attached. These warrants expire today. The market value of the firm's
Outer Wear has 12,000 shares of stock outstanding. Each share has a .5 warrant attached. These warrants expire today. The market value of the firm's assets net of its debt is $192,000. One new share can be obtained for one warrant plus $18. Assuming all else held constant, what would you expect the market price per share to be tomorrow morning when the stock market opens?
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