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The firm just issued 0.2 million shares of package. Each package is with $1,000 price consisting of: (1) 10% annual coupon rate, 20-year bond and
The firm just issued 0.2 million shares of package. Each package is with $1,000 price consisting of: (1) 10% annual coupon rate, 20-year bond and (2) 20 warrants with exercise price of $20 with 10 years maturity. Prior package issuance, capital source is 100% common equity with 10 million shares at 15 per share. Value of firm's operations and investments immediately after issuing the bonds with warrants =$300 million. Expected annual growth rate =10%. What is the firm value immediately after all warrants are exercised? $805.22 million $832.15 million $900.54 million $858.12 million
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