Calculate the market price of warrants

Assignment Help Finance Basics
Reference no: EM1359850

Sloane Corporation offered detachable 5-year warrants to buy one share of common stock (par value $5) at $20 (at a time when the stock was selling for $32). The price paid for 2,000, $1,000 bonds with the warrants attached was $205,000. The market price of the Sloane bonds without the warrants was $180,000, and the market price of the warrants without the bonds was $20,000. What amount should be allocated to the warrants?
a. $20,000
b. $20,500
c. $24,000
d. $25,000

Reference no: EM1359850

Compute the future value of savings

Suppose you just received a gift of $500 from your grandmother and you are thinking about saving this money for graduation, which is four years away. You have your choice betw

Unit price matching

Stan Fawcett's company is planning producing a gear assembly that it now purchases from Salt Lake Supply, Corporation Salt Lake Supply charges $4 per unit with a minimum order

Calculate the present value of project

As manager of short-term projects, you are planning to decide whether or not to invest in a short-term project that pays one cash flow of $1,000 one year from present.

Determine the speculative premium on the warrant

Suppose you can buy a warrant for $5 that gives you the option to buy one share of common stock at $14 each share. The stock is currently selling at 16 a share.

Determine cost of a bookcase

The cost of a bookcase was $70.00. Overhead associated with the bookcase was $10.00. Markup on the bookcase was 80 percent of cost. The merchant marked the bookcase down by 25

Calculate the break-even point resale price

Suppose you have decided to acquire a new car that costs $30,000. You are considering whether to lease it for 3-years or to buy it and finance the purchase with a 3-year insta

Euro value against the dollar

Suppose that many European countries that use the euro as their currency experience higher inflation than the US, while 2 other European countries that use the euro as their c

Currencies against the dollar

Currencies of some Latin American countries, such as Brazil and Venezuela, frequently weaken against most other currencies. What concept in this chapter explains this occurren

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd