Cullumber Corporation offered detachable 5-year warrants to buy one share of common stock (par value...
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Cullumber Corporation offered detachable 5-year warrants to buy one share of common stock (par value $5) at $20 (at a time when the stock was selling for $30). The price paid for 800, $1000 bonds with the warrants attached was $820000. The market price of the Cullumber bonds without the warrants was $724000, and the market price of the warrants without the bonds was $74000.
What amount should be allocated to the warrants? $76040 $90000 $74000 $94000
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