Kida Consultants Has 100,000 Shares of Stock Outstanding

Multiple Choice

Kida Consultants has 100,000 shares of stock outstanding.The firm's value net of debt is $2 million.Kida has 1,000 warrants outstanding with an exercise price of $18,where each warrant entitles the holder to purchase one share of stock.Calculate the gain from exercising a single warrant.

A) $1.87
B) $1.72
C) $1.45
D) $.38
E) $1.98