Question 1. The Burma Hat Company's warrant is trading for $10.20. The warrant carries the options to purchase two shares of common stock for $48.00. What is the speculative premium if the stock price is $51.03?
Question 2. Allais Company's bond has a @114 annual coupon, maturing in 10 years at a value of $1,000 has a current market price of $1140. What is the nominal yield of the bond?
Question 3. A firm as $2,000,000 in its common stock account and $20,000,000 in its paid-capital account. The firm issued 500,000 shares of common stock. What is the par value of the common stock?