Warrants are long-term options to buy a stated number of common shares at a specified price; they are generally attached to debt issues. If a warrant-issuing company declares to distribute dividends on its common shares, and the distribution will be made before the expiratior warrants, which of the following investors are eligible to recelve the dividends? Investors who have yet to exercise their warrants Investors who have exercised their warrants Consider the case of The Universal Group. The company issued warrants that allow holders to purchase two shares of the company's common stock at an exercise price of $16.00 per share. These warrants were issued two years ago and are set to expire on October 1 two years from now. Zoya is an analyst who has been tracking The Universal Group's market performance and its impact on the equity offerings of the company. She submitted a report in January this year stating that the company's warrants were trading at a price of $4.13 each on January 1 . The company's common shares were trading at $22.50 per share on the same day. Analysts expect The Universal Group stock price to rise to $22.40 by October 1 two years from now. Based on your understanding of warrants, complete the following valuations in Zoya's report. Suppose that on October 1 (two years from now) the warrant is trading at a price of $20.48 per warrant. The premium over the formula value on October 1 will be