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Kida Consultants Currently Has 300,000 Shares of Common Outstanding

Question 54

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Kida Consultants currently has 300,000 shares of common outstanding. Firm value net of debt is $3,900,000. Kida has warrants outstanding with an exercise price of $10. How many warrants must the firm have issued if the gain from exercising a single warrant is $8.25?

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[300,000/(300,000 + ...

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