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Sindrei [870]
3 years ago
8

Lefty Consultants currently has 300,000 shares of common outstanding. Firm value net of debt is $3,450,000. The firm has warrant

s 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
Business
1 answer:
s2008m [1.1K]3 years ago
8 0

Answer: 60000

Explanation:

We will calculate the share price post warrant issues which will be:

= $10 + $1.25

= $11.25

Then, let the number of warrant issues is represented by x. Slotting this into the formula for the share price post warrant issued will go thus:

11.25 = (3450000 + 10×x) / (300000 + X)

3375000 + 11.25x = 3450000 + 10x

Collect like terms

11.25x - 10x = 3450000 - 3375000

1.25x = 75000

x = 75000/1.25

x = 60,000

Therefore, the number of warrant issued is 60,000

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Which of the following statements is most​ correct? A. KSFs are often​ necessary, but not sufficient for competitive advantage.B
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Answer:

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Explanation:

KSF

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Answer:

$9.7408

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8 0
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