Lefty Consultants Currently Has 300,000 Shares of Common Outstanding

Multiple Choice

Lefty Consultants currently has 300,000 shares of common outstanding.Firm value net of debt is $3,450,000.The firm has warrants outstanding with an exercise price of $10.How many warrants must the firm have issued if the gain from exercising a single warrant is $1.25? Assume each warrant entitles its owner to one new share.

A) 24,000
B) 45,000
C) 50,000
D) 80,000
E) 60,000