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klasskru [66]
2 years ago
8

Sen Corporation warrants carry the right to buy 6 shares of Sen common stock at $10.00 per share. The common stock has a current

market price of $14.25 per share. The intrinsic or minimum value of one Sen warrant is ________. (Round your answer to 2 decimal places.) $0 $25.50 $24.50 $27.00
Business
1 answer:
Advocard [28]2 years ago
8 0

Answer: $25.50

Explanation:

Intrinsic Value of warrant = Number of shares buyable * (Market price - Warrant price)

= 6 * (14.25 - 10)

= $25.50

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