# Question: Calculate the payoff of fully exercising warrants given the following

Calculate the payoff of fully exercising warrants given the following: 900,000 existing shares are outstanding (n); 100,000 warrants (m) are outstanding and are exercisable at $10 (X). The firm is valued at $10 million (V) before the warrants are exercised. Calculate the payoff to warrant holders and the dilution factor.

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