Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the redford investment company bought 90 cinema co

The Redford Investment Company bought 90 Cinema Corp. warrants one year ago and would like...

60.1K

Verified Solution

Question

Accounting

The Redford Investment Company bought 90 Cinema Corp. warrants one year ago and would like to exercise them today. The warrants were purchased at $31 each, and they expire when trading ends today (assume there is no speculative premium left). Cinema Corp. common stock is selling today for $59 per share. The exercise price is $35 and each warrant entitles the holder to purchase two shares of stock, each at the exercise price.

a. If the warrants are exercised today, what would the Redford Investment Companys dollar profit or loss be? (Do not round intermediate calculations. Input your dollar answer as a positive value rounded to the nearest whole dollar.)

b. What is the Redford Investment Companys percentage rate of return? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Identify theParticiple in thefollowingsentence:Walking, shereached the endof themarathon.A. reachedB. walkingC. marathon

Finance
1.2K views

Instructions: You are required to use a financial calculator or spreadsheet (Excel) to solve the following capital...

Statistics
1.2K views

In the binomial probability distribution, let the number of trials be n = 4, and let...

Electrical Engineering
1.2K views

Cite 2 methods to deposit metal.

Biology
1.2K views

A researcher claims that different metabolic pathways allow bacteria to use different molecules as sources...

Biology
1.2K views

Photosynthesis provides us with an oxygen rich atmosphere Where doe he released 2 come from...

Basic Math
1.2K views

3 If 2000 is invested at an interes of 3 5 per year compounded continuously...

Calculus
1.2K views

Find the indefinite integral using the substitution x 6 sin 8 Use C for the...

Calculus
1.2K views

a calculator to find the value of

Accounting
1.2K views

Allocating Transaction Price to Performance Obltgations and Eecording...

Accounting
1.2K views

For the standard normal distribution, find the value of...

Finance
1.2K views

Problem 7-18 Abandonment We are examining a new project. We expect to sell 6,400 units...