Simba Inc Has Warrants Outstanding, Which Are Selling at a $2

question 1

Multiple Choice

Simba Inc. has warrants outstanding, which are selling at a $2 premium above intrinsic (or minimum) value. Each warrant allows its owner to purchase one share of common stock at $24. If the common stock currently sells for $29, what is the warrant price?

• A) $ 5
• B) $7
• C) $12
• D) $14.50

---

Definitions:

Organizational Influences

Factors within a company that affect its operations and culture, including management practices, organizational structure, and internal communication.

Government Regulation

Statutory rules and directives established by governmental bodies to control activities within various industries and society for the protection and welfare of the public.

Public Scrutiny

The examination and evaluation of a company's actions and decisions by the general public and media.

Culture Dependent

Pertaining to phenomena, behaviors, or patterns that are heavily influenced or determined by cultural factors.