DCF Enterprises Inc.'s capital structure consists of 18 million shares of common stock and 1 million warrants. Each warrant entitles the holder to acquire one share of common stock for $17 if exercised. The stock is currently trading at $26, and each warrant is worth $10. What is the company's new value? What is the current price of the stock? Asap
DCF Enterprises Inc.'s capital structure consists of 18 million shares of common stock and 1 million warrants. Each warrant entitles the holder to acquire one share of common stock for $17 if exercised. The stock is currently trading at $26, and each warrant is worth $10. What is the company's new value? What is the current price of the stock? Asap
Chapter20: Financing With Derivatives
Section: Chapter Questions
Problem 8P
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DCF Enterprises Inc.'s capital structure consists of 18 million shares of common stock and 1 million warrants. Each warrant entitles the holder to acquire one share of common stock for $17 if exercised. The stock is currently trading at $26, and each warrant is worth $10.
What is the company's new value?
What is the current price of the stock?
Asap
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