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Q 16.59: RL Enterprises offers a unit comprising one share of stock and one detachable stock warrant. The warrant is exercisable at $21.50 per share,

Q 16.59:

RL Enterprises offers a unit comprising one share of stock and one detachable stock warrant. The warrant is exercisable at $21.50 per share, good for five years. The unit sells for $19.75. If the price of common stock on the day of the sale is $18.65, what is the price of the warrant?

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