Question
The capital structure of DCF Enterprises Inc. consists of 18 million shares of common stock and 1 million warrants. Each warrant gives its owner the
The capital structure of DCF Enterprises Inc. consists of 18 million shares of common stock and 1 million warrants. Each warrant gives its owner the right to purchase one share of common stock for an exercise price of $17. The current stock price is $26, and each warrant is worth $10.
What is the new value of the company?
What is the new stock price?
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
978-1119496496
