CORPORATE FINANCE - CONNECT ACCESS
CORPORATE FINANCE - CONNECT ACCESS
12th Edition
ISBN: 9781264054893
Author: Ross
Publisher: MCG
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Chapter 24, Problem 2CQ

a.

Summary Introduction

To determine: Lower bound on the price of warrants.

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 the share.

b.

Summary Introduction

To determine: The lower bound on the price of the warrant is the difference of the stock and exercise price.

c.

Summary Introduction

To determine: Upper bound on the price of warrant is the current value of the firm stock

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