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What amount should be assigned to the share warrants issued

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Question - The LAOS COMPANY wants to raise its working capital. After analysis of the available options, the company decides to issue 6,000 shares of P30 per preference shares with detachable warrants. The package of the shares and warrants sells for P120. The warrants enable the holder to purchase 6,000 shares of P10 par ordinary shares at P40 per share. Immediately following the issuance of the shares, the share warrants are selling at P10 per share. The market value of the preference shares without the warrants is P90. What amount should be assigned to the share warrants issued?

Reference no: EM133169370

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