Essay
A firm has 2,000 shares of stock and 200 warrants outstanding. The warrants are about to expire,and all of them will be exercised. The market value of the firm's assets is $14,000,and the firm has no debt. Each warrant gives the owner the right to buy 1 share at $5. What is the warrant's effective exercise price?
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Value of the warrant = {[$14,0...View Answer
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