Diamond Drill Inc

question 22

Multiple Choice

Diamond Drill Inc. has 150,000 shares and 15,000 warrants outstanding. A warrant holder can purchase a new share of stock for five warrants and $5.00 per warrant. The stock is currently selling for $27 per share.
-Refer to the above scenario.If all warrants are exercised, what will your fraction of ownership be if you owned 20,000 shares originally?

• A)12.12%
• B)13.07%
• C)13.33%
• D)14.04%
• E)Without knowing the exercise price the percent can not be determined.

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Definitions:

Labor Productivity

refers to the amount of goods and services produced by one hour of labor.

Developing Nations

Countries that are in the process of industrialization and have lower levels of material well-being compared to developed economies.

Privately Controlled

refers to entities or businesses that are owned, operated, and managed by private individuals or corporations rather than by the government.

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time.