The Rand Company wants to raise additional equity capital.The company decides to issue 5,000 shares of $25 par preferred stock with detachable warrants.The package of the stock and warrants sells for $105.Each warrant enables the holder to purchase two shares of $10 par common stock at $30 per share.Immediately following the issuance of the stock,the stock warrants are selling at $14 each.The market value of the preferred stock without the warrants is $96.

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The Answer of The Rand Company wants to raise additional equity capital.The company decides to issue 5,000 shares of $25 par preferred stock with detachable warrants.The package of the stock and warrants sells for $105.Each warrant enables the holder to purchase two shares of $10 par common stock at $30 per share.Immediately following the issuance of the stock,the stock warrants are selling at $14 each.The market value of the preferred stock without the warrants is $96.

The Rand Company Wants to Raise Additional Equity Capital