Business, 23.11.2019 01:31 John7Gilbert

Lake norman corporation offered detachable 5-year warrants to buy one share of common stock (par value $5) at $20 (at a time when the stock was selling for $32). the price paid for 2,000, $1,000 bonds with the warrants attached was $205,000. the market price of the lake norman bonds without the warrants was $180,000, and the market price of the warrants without the bonds was $20,000. what amount should be allocated to the warrants?
a.$24,000
b.$20,000
c.$20,500
d.$25,000

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