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The Intrinsic Value of a Warrant = (Market Price of Common

question 115

True/False

The intrinsic value of a warrant = (Market price of common stock + Warrant exercise price) ´ Number of shares specified by warrant.


Definitions:

Notes Receivable

Claims against debtors documented by promissory notes, which promise the future inflow of cash.

Aging Schedule

A table or report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding.

Net Receivables

The total amount of money owed to a company by its customers after accounting for allowances for doubtful accounts.

Credit Sales

Sales made on credit where the payment is received after the service is delivered or the product is sold, thus creating receivables.

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