Keiser University has warrants in the market that allows people who own it to be authorized...

Keiser University has warrants in the market that allows people who own it to be authorized to buy 1 share of the university at the price of $ 25.

a) Calculate the execution value of the organization's warrants if the common shares are sold each at the following prices: (1) $ 20, (2) $ 25, (3) $ 30), (4) $ 100. (The warrant's execution value is the difference between the price of the shares and the purchase price specified by the warrant if the authorization is executed.)

Expert Solution

Execution value of warrant = Stock price - warrant specified purchase price.
value cannot be negative. Minimum value can be zero only. In other words, If stock price is more than warrant specified price, then only warrant will be excercised. Warrant is an option to buy the share, so it is only excercised when stock price is more than warrant specified purchase price.

(1) Stock price =   20
warrant specified purchase price =   $25
Execution value = 20-25 =   0

(2) Stock price =   $25
Execution value = 25-25 =   $0

(3) Stock price =   $30
Execution value = 30-25 =   $5

(4) Stock price =   $100
Execution value = 100-25 =   $75

So execution value is $0, $0, $5 and $75 in respective cases.

jeff jeffy answered 6 months ago

According to a study published by a university, about two-thirds of the 20 million people who...

According to a study published by a university, about two-thirds of the 20 million people who consume Valium in the US are women. Suppose a doctor who specializes in solving anxiety problems and muscle spasms always prescribe Valium to his patients. Also suppose that the possibility of the doctor rattling a female patient is 2/3. a) Find the probability that the fifth Valium prescription given by a doctor is the first valium prescription for a woman. (what distribution should...

Test the claim that the proportion of people who own cats is smaller than 30% at...

Test the claim that the proportion of people who own cats is smaller than 30% at the 0.005 significance level. The null and alternative hypothesis would be: H0:μ≥0.3H0:μ≥0.3 H1:μ<0.3H1:μ<0.3 H0:μ≤0.3H0:μ≤0.3 H1:μ>0.3H1:μ>0.3 H0:p≤0.3H0:p≤0.3 H1:p>0.3H1:p>0.3 H0:p≥0.3H0:p≥0.3 H1:p<0.3H1:p<0.3 H0:μ=0.3H0:μ=0.3 H1:μ≠0.3H1:μ≠0.3 H0:p=0.3H0:p=0.3 H1:p≠0.3H1:p≠0.3 The test is: right-tailed left-tailed two-tailed Based on a sample of 700 people, 24% owned cats The test statistic is: (to 2 decimals) The p-value is: (to 2 decimals) Based on this we: Fail to reject the null hypothesis Reject the null hypothesis

Why is it important for people who own stocks and bonds to diversify their holdings? What...

Why is it important for people who own stocks and bonds to diversify their holdings? What type of financial intermediary makes diversification easier? What is national saving? What is private saving? What is public saving? How are these three variables related?

6) Tuition and fees at Eastern Washington University Suppose state law allows the university to increase...

6) Tuition and fees at Eastern Washington University Suppose state law allows the university to increase tuition and fees by 3.5% per year. You would like you child to have enough money for four years at Eastern Washington University 16 years from now (suppose your child is 2 years old). According to EWU the current tuition and fees for THIS year is $7109.61 (this is based on three quarters of attendance). Create an Excel Table with first column “Years from...

1-Test the claim that the proportion of people who own cats is smaller than 60% at...

1-Test the claim that the proportion of people who own cats is smaller than 60% at the 0.05 significance level. The null and alternative hypothesis would be: A) H0:μ≥0.6H0:μ≥0.6 H1:μ<0.6H1:μ<0.6 B) H0:μ=0.6H0:μ=0.6 H1:μ≠0.6H1:μ≠0.6 C) H0:p=0.6H0:p=0.6 H1:p≠0.6H1:p≠0.6 D) H0:μ≤0.6H0:μ≤0.6 H1:μ>0.6H1:μ>0.6 E) H0:p≤0.6H0:p≤0.6 H1:p>0.6H1:p>0.6 F) H0:p≥0.6H0:p≥0.6 H1:p<0.6H1:p<0.6 The test is: A) two-tailed B) right-tailed C) left-tailed Based on a sample of 300 people, 57% owned cats The p-value is: (to 2 decimals) Based on this we:...

1) Test the claim that the proportion of people who own cats is smaller than 60%...

1) Test the claim that the proportion of people who own cats is smaller than 60% at the 0.05 significance level. The null and alternative hypothesis would be: H0:p=0.6H0:p=0.6 H1:p≠0.6H1:p≠0.6 H0:μ≥0.6H0:μ≥0.6 H1:μ<0.6H1:μ<0.6 H0:μ=0.6H0:μ=0.6 H1:μ≠0.6H1:μ≠0.6 H0:p≤0.6H0:p≤0.6 H1:p>0.6H1:p>0.6 H0:μ≤0.6H0:μ≤0.6 H1:μ>0.6H1:μ>0.6 H0:p≥0.6H0:p≥0.6 H1:p<0.6H1:p<0.6 The test is: two-tailed right-tailed left-tailed Based on a sample of 100 people, 59% owned cats The test statistic is: (to 2 decimals) The p-value is: (to 2 decimals) Based on this we: Fail to reject the null hypothesis Reject the null...

1. Test the claim that the proportion of people who own cats is significantly different than...

1. Test the claim that the proportion of people who own cats is significantly different than 30% at the 0.2 significance level. The null and alternative hypothesis would be: a) H0:μ≤0.3 Ha:μ>0.3 b) H0:p≥0.3 Ha:p<0.3 c) H0:μ≥0.3 Ha:μ<0.3 d) H0:p≤0.3 Ha:p>0.3 e) H0:μ=0.3 Ha:μ≠0.3 f) H0:p=0.3 Ha:p≠0.3 The test is: -left-tailed -two-tailed -right-tailed Based on a sample of 400 people, 31% owned cats The p-value is: ____? (to 2 decimals) Based on this we: Reject the null hypothesis Fail to...

Explain the pitfalls in the following statements. a. People who play golf are more likely to own

Explain the pitfalls in the following statements.a. People who play golf are more likely to own a luxury car than people who do not play golf. Therefore, owning a luxury car causes people to play golf.b. Oscar Johansson noted that when he buys new shares of a company’s stock listed on Nasdaq Stockholm, the stock price usually increases if he takes a shower after making his decision. Last night, Oscar bought some shares of a company and went home to...

Let us use confidence intervals to compare people who own or are buying a home among...

Let us use confidence intervals to compare people who own or are buying a home among those that are married versus those who pay rent among those that are married. Calculate pˆ for the group of homeowners that are married. For a confidence level of ell = .97, determine the z-score for which 97% of normally distributed data falls within z deviations of the mean. Calculate pˆ for the group of renters that are married. Now compare these two intervals....

Let us use confidence intervals to compare people who own or are buying a home among...

Let us use confidence intervals to compare people who own or are buying a home among those that are married versus those who pay rent among those that are married. Calculate pˆ for the group of homeowners that are married. For a confidence level of ell = .97, determine the z-score for which 97% of normally distributed data falls within z deviations of the mean. Calculate pˆ for the group of renters that are married. Now compare these two intervals....

Question

Keiser University has warrants in the market that allows people who own it to be authorized...

Solutions

Expert Solution

Related Solutions

According to a study published by a university, about two-thirds of the 20 million people who...

Test the claim that the proportion of people who own cats is smaller than 30% at...

Why is it important for people who own stocks and bonds to diversify their holdings? What...

6) Tuition and fees at Eastern Washington University Suppose state law allows the university to increase...

1-Test the claim that the proportion of people who own cats is smaller than 60% at...

1) Test the claim that the proportion of people who own cats is smaller than 60%...

1. Test the claim that the proportion of people who own cats is significantly different than...

Explain the pitfalls in the following statements. a. People who play golf are more likely to own

Let us use confidence intervals to compare people who own or are buying a home among...

Let us use confidence intervals to compare people who own or are buying a home among...