What is the market price for one warrant

Assignment Help Financial Management

Reference no: EM131061295

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: EM131061295

Questions Cloud

Seasoned equity offering to raise new equity capital : After a banner year of rising profits and positive stock returns, the managers of Raptor Pharmaceuticals Corporation (RPC) have decided to launch a seasoned equity offering to raise new equity capital. Calculate the return earned by RPC's existing st..

Problem regarding the women heights lie : Women's heights average 63 inches with a standard deviation of 2.7 inches in a certain study. Use the 68-95-99.7 rule to determine the typical ranges of the women's heights. In what range will approximately the middle 95% of the women's heights l..

What is the correlation between y and x : Suppose X and Y are two random variables with joint PMF that is approximately bivariate normal. Suppose that observing X reduces your prediction standard deviation ofY by a factor of 2.5. What is the correlation between Y and X?

Current liabilities-change in net working capital : The 2014 balance sheet of Steelo, Inc., showed current assets of $2,930 and current liabilities of $1,390. The 2015 balance sheet showed current assets of $2,945 and current liabilities of $1,635. What was the company’s 2015 change in net working cap..

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..

Stock is expected to pay the dividends : A stock is expected to pay the following dividends: $1.15 in 1 year, $1.55 in 2 years, and $1.80 in 3 years, followed by growth in the dividend of 7% per year forever after that point. The stock's required return is 13%. The stock's current price (Pr..

Miller modigliani theorems : Outline and critically discuss the Miller Modigliani theorems in light of the real company information that you have collected and the academic literature on capital structure. (you can choose one of the energy company: Chevron,Devon Energy,Hess C..

Report on an engineering failure of a consumer product : ENGG100 Assessment A6: Failure analysis. Write a report (max. 4 pages) on an engineering failure of a consumer product. Present the failure analysis in the style of a technical report. Introduce the failure with supporting information

User Account

All Pages