The Gain on a Warrant Is Computed As

The gain on a warrant is computed as:

A) {[Firm's value net of debt + Exercise price(N_w) ]/(N + N_w) } − Exercise price.
B) [Firm's value net of debt + Exercise price(N_w) ]/N − Exercise price.
C) Firm's value net of debt/N − Exercise price.
D) Firm's value net of debt/(N + N_w) − Exercise price.
E) (Firm's value net of debt − Exercise price) /(N + N_w) .