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The capital structure of Ricketti Enterprises, Inc., consists of 21.6 million shares of common stock and 3.1 million warrants. Each warrant gives its owner the
The capital structure of Ricketti Enterprises, Inc., consists of 21.6 million shares of common stock and 3.1 million warrants. Each warrant gives its owner the right to purchase one share of common stock for an exercise price of $20.60. The current stock price is $28.20, and each warrant is worth $8.60. What is the new stock price if all warrant holders decide to exercise today?
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