Pace Western Crystal, Inc. has 10 million shares of common stock outstanding and 200,000 warrants. Each warrant entitles the holder to purchase 5 shares of common stock at a price of $15 per share. Warrant holders exercised all of their warrants today. The market value of Pace Western’s assets before the exercise was $170 million. What should the new stock price be after the exercise?

Answer rating: 100% (QA)

Solution Total warrants 200000 Each warrant 5 shar... View the full answer