Essay
A firm has 500 shares of equity and 100 warrants outstanding.The warrants are about to expire,
and all of them will be exercised.The market value of the firm's assets is €25,000, and the market
value of the debt is €8,000.Each warrant gives the owner the right to buy 5 shares at €25 per
share.What is the value of a warrant?
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Value of a warrant to buy 1 sh...View Answer
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Correct Answer:
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