Q3. The Edelman Gem Company, a small jewellery manuficturer, has been successful and has enjoyed a good growth trend. Now Edelman is planning to go public with an issue of common stock, and it faces the problem of setting an appropriate price for the stock. The company and its investment banks believe that the proper procedure is to select several similar firms with publicly traded common stock and to make relevant comparisons. Several jewellery manufacturers are reasonably similar to Edelman with respect to product mix, asset composition, and debt/cquity proportions. Of these companies, Kennedy Jewellers and Strasburg Fashions are most similar. Edelman Gem Company contacted Millennium Brokerage Inc, to underwrite new issue for several jewelry. Several jewellery manufacturers decided to issue 2.7 million shares and they agree on the term to offer $6 per share price to general publie. Millennium Brokerage lnc., promised to pay proceeds of $15.5 million. Millennium incurred different expenses of $20,00,000. What profit or loss would Millennium Brokerage incur if the issue were sold to general public at the average price: $7.$6. \$5. (5 Marks) B. Crowdstage Enterprises recentiy issued 30-ycar bonds with a 7.5% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Neubert also has outstanding $1,000 par value 30 -year straight debt with a 9.5% coupon paid annually, also trading for $1,000. 1) What is the current price of the bond? (3 Marlis) 2) What is the implied value of the warrants attached to each bond? (2 Marks)