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Value of warrants

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1. A company has warrants on the market that allows people who own it to buy 1 share price at cost $25.
a. Calculate the value of the security warrants of the organization if the common shares are sold each at the following rates: (1) $ 20, (2) $ 25, (3) $ 30), (4) $ 100.
(NOTE: The value of executing a warrant is the difference between the stock price and the purchase price specified in the warrant if the authorization is executed.)

2. The executives agreed that the industry should finance growth through the sale of common shares and no debt. However, they felt that the current $42 for the price of the common shares of the company does not reflect its true value, they decided to sell a convertible security. Considered a convertible bond they feared the burden of fixed interest if the common stock does not increase enough in price to make conversion attractive. They decided to offer a convertible preferred stock, which paid a dividend of $ 2.10 per share.
a. The conversion ratio will be 1.0; each part of the convertible preferred stock can be converted into a single part of a joint action. Therefore, the nominal value of the convertible (and the issue price) will be equal to the conversion price, which in turn will be determined as a reward ( the percentage by which the conversion price exceeds the stock price) on the current market price of the common stock. Which one if the conversion price if the award is set at 10% ? And award of 30%?

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