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1. Your company has warrants outstanding that permits its holders to purchase one share of...

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1. Your company has warrants outstanding that permits its holders to purchase one share of stock per warrant at a price of $21 a. Calculate the value of your warrants is the common stock sells for $18, $21, $25 and $70 b. At what approximate price would the warrants sell for in part a? Explain c. How would the following factors impact your answer in part b: The life of the warrant is lengthened The volatility of the stock prices decreases The expected growth in EPS increases The company goes from 0% of EPS as dividends to 100% of EPS as dividends d. Assume the stock currently sells for $18 per share. If the company wants to sell some bonds: 20-year maturity annual interest 50 warrants are attached exercisable at $21 per share the warrants have a market value of $1.50 when the stock price is $18 What coupon rate should you use

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