A firm has 600 shares of stock and 100 warrants outstanding.Assume the warrants are all exercised.The market value of the firm's assets is $25,000 and the market value of its debt is $8,000.Each warrant grants its owner the right to buy one new share at $27.50.What is the gain on one warrant?
A)$.87
B)$.79
C)$.25
D)$.38
E)$.71

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The Answer of A firm has 600 shares of stock and 100 warrants outstanding.Assume the warrants are all exercised.The market value of the firm's assets is $25,000 and the market value of its debt is $8,000.Each warrant grants its owner the right to buy one new share at $27.50.What is the gain on one warrant?
A)$.87
B)$.79
C)$.25
D)$.38
E)$.71

A Firm Has 600 Shares of Stock and 100 Warrants