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Eastern Shore Merchants Has 75,000 Shares and 50,000 Warrants Currently

Question 61

Multiple Choice

Eastern Shore Merchants has 75,000 shares and 50,000 warrants currently outstanding.A warrant holder can purchase one new share of stock in exchange for four warrants plus $20.The stock is currently selling for $20.60 per share.What would be the gain per new share from exercising the warrants,assuming all warrants are exercised?


A) $.15
B) $.51
C) $.60
D) $2.40
E) $2.04

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