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

---

Definitions:

Instant Messaging (IM)

A form of real-time text communication between two or more individuals over the internet.

Real-Time Communication

The immediate exchange of information and communication that happens without significant delay, allowing for synchronous interactions.

Wi-Fi

A wireless networking technology that allows devices to communicate over the internet without direct cable connections.

Digital Media Device

A device such as a smartphone, tablet, or computer that can store, create, or share digital content.