Outer Wear Has 12,000 Shares of Stock Outstanding

question 12

Multiple Choice

Outer Wear has 12,000 shares of stock outstanding.Each share has a .5 warrant attached.These warrants expire today.The market value of the firm's assets net of its debt is $192,000.One new share can be obtained for one warrant plus $18.Assuming all else held constant,what would you expect the market price per share to be tomorrow morning when the stock market opens?

• A)$16.67
• B)$15.33
• C)$16.00
• D)$18.00
• E)$17.50

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Definitions:

Extreme Scores

Statistical outliers or data points that are significantly higher or lower than the majority of scores in a data set.

Placebo Effects

Changes in a patient's condition attributed to the belief in the effectiveness of an inert treatment or procedure.

Experimenter Bias

A process where the researchers' expectations inadvertently influence the outcome of a study.

Random

Lacking any definite plan or order or purpose; governed by chance.