CORPORATE FINANCE (LL)-W/ACCESS
11th Edition
ISBN: 9781259976360
Author: Ross
Publisher: MCG
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Chapter 24, Problem 13QP
Summary Introduction
To determine: New stock price.
Warrant Value:
The difference between value of the stock and exercise price is called the warrant value. Warrant is issued by the company which increases the number of shares.
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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?
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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.
And what's the company's new value?What is the current price of the stock?
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An investor has P1,000 that she is interested in investing in National Inc. stock, which is currently selling for P50 per share. National Inc.'s warrants are selling for P12 per warrant. Each warrant entitles the holder to purchase three shares of National Inc.'s common stock for P47 per share. The warrant premium is
Chapter 24 Solutions
CORPORATE FINANCE (LL)-W/ACCESS
Ch. 24 - Prob. 1CQCh. 24 - Prob. 2CQCh. 24 - Convertible Bonds and Stock Volatility Suppose you...Ch. 24 - Convertible Bond Value What happens to the price...Ch. 24 - Prob. 5CQCh. 24 - Warrants and Convertibles What is wrong with the...Ch. 24 - Warrants and Convertibles Why do firms issue...Ch. 24 - Convertible Bonds Why will convertible bonds not...Ch. 24 - Convertible Bonds When should a firm force...Ch. 24 - Conversion Price A convertible bond with a par...
Ch. 24 - Conversion Ratio A convertible bond with a par...Ch. 24 - Conversion Premium Eckely, Inc., recently issued...Ch. 24 - Convertible Bonds Hannon Home Products, Inc.,...Ch. 24 - Prob. 5QPCh. 24 - Convertible Bond Value An analyst has recently...Ch. 24 - Convertible Bond Value Sportime Fitness Center,...Ch. 24 - Convertible Bonds You own a callable, convertible...Ch. 24 - Prob. 9QPCh. 24 - Convertible Bonds Vital Silence Corp. bas just...Ch. 24 - Convertible Bonds Rob Stevens is the chief...Ch. 24 - Prob. 12QPCh. 24 - Prob. 13QPCh. 24 - Prob. 14QPCh. 24 - Warrant Value Superior Clamps, Inc., has a capital...Ch. 24 - Prob. 16QPCh. 24 - SS AIR'S CONVERTIBLE BOND Chris Guthrie was...Ch. 24 - What is the floor value of the SS Air convertible...Ch. 24 - What is the conversion ratio of the bond?Ch. 24 - What is the conversion premium of the bond?Ch. 24 - What is the value of the option?Ch. 24 - Is there anything wrong with Todds argument that...Ch. 24 - Is there anything wrong with Marks argument that a...Ch. 24 - Prob. 8MCCh. 24 - During the debate, a question comes up concerning...
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