Principles of Corporate Finance

(Barry) #1

United Glue Warrants


w United glue has just issued $2 million package of debt and
warrants. Using the following data, calculate the warrant
value.

$5 100,000500,000Cost of each warrant


500,000 2,000,000-1,500,000


Cost of warrants total financing - value of loans w/o warrants


=


=


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