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Business, 15.04.2020 03:16 reyrey216

Vernon Corporation offered detachable 5-year warrants to buy one share of common stock (par value $5) at $20. The price paid for 800, $1,000 bonds with the warrants attached was $820,000. The market price of the Vernon bonds without the warrants was $720,000, and the market price of the warrants without the bonds was $80,000. What amount should be allocated to the warrants?

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Vernon Corporation offered detachable 5-year warrants to buy one share of common stock (par value $5...
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