Suppose a corporation issued 90,000 shares. The firm is all-equity financed, and its book value is $4,500,000. Suppose the corporate also issued a warrant which gives its holder the right to buy 10,000 shares of the corporate at $40. If the holder exercises his warrant today, what will be the value book of each share after the warrant is exercised?

Answer rating: 100% (QA)

To calculate the book value per share after the warrant is exercised we need to consider the additio... View the full answer