The Manchester Corporation has warrants presently outstanding, and each warrant entitles the holder to purchase one share of the companys common stock at an exercise price of $20 a share If the market price of the warrants is $8 and the common stock price is $24 a share, what is the premium over th...

Formula value Common stock price ...

The Manchester Corporation has warrants presently outstanding, and each warrant entitles the holder to purchase one share

Question:

The Manchester has warrants presently outstanding, and each warrant entitles the holder to purchase one share of the company’s at an exercise price of $20 a share. If the market price of the warrants is $8 and the price is $24 a share, what is the premium over the formula value for the warrants?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...