Lear Holdings Plans to Sell 60,000 Units, Each Unit Consisting

question 47

Multiple Choice

Lear Holdings plans to sell 60,000 units, each unit consisting of a $1,000 debenture and 15, 7-year warrants. Each warrant allows the holder to purchase one common-share at $30. If the stock price goes to $38 and all warrants were exercised, what is the total capital raised by Lear?

• A) $94.2 million
• B) $90.6 million
• C) $87 million
• D) $77 million

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