The Capital Structure of Springmaid Company Is as Follows

The capital structure of Springmaid Company is as follows:
Long-term debt $ 400 million
Common stock, $1 par 50 million
Contributed capital in excess of par 250 million
Retained earnings 600 million
Total $ 1,300 million
The company has decided to raise additional capital by selling $100 million of 8% debentures with warrants attached.Each $1,000 debenture will have 40 warrants attached, and each warrant will entitle the holder to purchase one share of common stock at $20.Assume that no other changes in the capital structure occur between now and the time the warrants are exercised.Determine how much total capital the company will raise as a result of the issuance of debentures with warrants attached (after exercise of the warrants) .

A) $100 million
B) $80 million
C) $180 million
D) $20 million