What is the market price for one warrant

Assignment Help Financial Management

Reference no: EM131130381

The AAAA Company has 100,000 shares outstanding and 20,000 warrants outstanding. Each warrant has a maturity of one year and gives the holder the right to buy one new share from AAAA Company for $50. Suppose the premium on a call option (on AAAA Co. stock) with a strike price of $50 and maturity of 1 year is $3. What is the market price for one warrant?

Reference no: EM131130381

Questions Cloud

Calculate net working capital-evaluating the balance sheet : You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $950,000, accounts receivable = $1,800,000, inventory = $2,300,000, accrued wages and taxes ..

Current equity valuations in order to recommend strategic : Throughout this course, you will prepare a comprehensive financial analysis and proposal (excluding tables, figures, and addenda) that will demonstrate your understanding of key financial concepts, strategies, and practices.

What is meant by factor-intensity reversal : What were the results of empirical tests on the prevalence of factor reversal in the real world?

Calculate the purchase price to produce an annual yield : An investor purchased an eight-year financial instrument having the following features. The investor receives payments of $10,000 at the end of each year for eight years. These payments earn interest at an effective rate of 5% per year but the intere..

What is the market price for one warrant : The AAAA Company has 100,000 shares outstanding and 20,000 warrants outstanding. Each warrant has a maturity of one year and gives the holder the right to buy one new share from AAAA Company for $50. Suppose the premium on a call option (on AAAA Co. ..

The estimated price per share of the stock : A stock is expected to pay a dividend of $1.30 one year from now, $1.70 two years from now, and $2.10 three years from now. The growth rate in dividends after that point is expected to be 8% annually. The required return on the stock is 13%. The esti..

Make cultural change particularly challenging : Are there particular aspects of NASA that might make cultural change particularly challenging? Are bureaucracies particularly susceptible to these difficulties of cultural change? Do organizations involved in high-risk tasks face special challeng..

What are some innovative approaches that can be used : What are some innovative approaches that can be used to teach ethics at the university level? Academics who have toiled thanklessly in the field of business ethics now marvel at their recent popularity on campus. "It's been unbelievable," says Timoth..

Features of mutual funds and the investment environment : considering the discussion of market efficiency from Chapter 6, discuss whether you should be willing to pay high fees to mutual fund investment managers.

User Account

All Pages