Westover Industries has 60,000 shares outstanding. Each share has one-third of a warrant attached. One warrant...

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Westover Industries has 60,000 shares outstanding. Each sharehas one-third of a warrant attached. One warrant plus $25 can beexchanged for one new share of stock. The stock is currentlyselling for $27 per share. All else held constant, what will thestock price be if all the warrants are exercised? Multiple Choice$27.00 $25.00 $26.50 $26.67

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Option C 2650 Explanation Number of shares outstanding 60000 Each share has 13 warrants attached so total warrants attached to the shares outstanding Number of shares outstanding 13 600003 20000 So    See Answer
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Westover Industries has 60,000 shares outstanding. Each sharehas one-third of a warrant attached. One warrant plus $25 can beexchanged for one new share of stock. The stock is currentlyselling for $27 per share. All else held constant, what will thestock price be if all the warrants are exercised? Multiple Choice$27.00 $25.00 $26.50 $26.67

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