Question
Your firm has 1,575,000 shares outstanding and plans to issue 90,000 warrants. Each warrant holder can purchase 3 new shares of stock. The stock price
Your firm has 1,575,000 shares outstanding and plans to issue 90,000 warrants. Each warrant holder can purchase 3 new shares of stock. The stock price is 10.34 now and call options with similar terms are selling for 7.34. What is the value of the warrant?
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
