A ﬁrm has 2,000 shares of equity and 200 warrants outstanding.The warrants are about to expire,
and all of them will be exercised.The market value of the ﬁrm's assets is €14,000, and the ﬁrm has
no debt.Each warrant gives the owner the right to buy 1 share at €5.What is the warrant's effective
exercise price?

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The Answer of A ﬁrm has 2,000 shares of equity and 200 warrants outstanding.The warrants are about to expire,
and all of them will be exercised.The market value of the ﬁrm's assets is €14,000, and the ﬁrm has
no debt.Each warrant gives the owner the right to buy 1 share at €5.What is the warrant's effective
exercise price?

A ﬁRm Has 2,000 Shares of Equity and 200 Warrants