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1 Bond with detachable warrant Bonds amount Par Value $ Fair Value Sale without warrant Sale at par value $ Warrants Detachable per bond Fair
1 Bond with detachable warrant Bonds amount Par Value $ Fair Value Sale without warrant Sale at par value $ Warrants Detachable per bond Fair value (prior selling) Fair value (post selling) 100% 100 100 102% 10,000 $ Common Stocks Par value $ 100 Fair value $ 110 Additional cash per share $ $ 30 Using the information above, prepare the Journal Entries for the borrower AND the investor Actions to take: 1. Selling of bond and detachable warrants 2. Exercise of warrant. 3. Expiration of warrant 1 Bond with detachable warrant Bonds amount Par Value $ Fair Value Sale without warrant Sale at par value $ Warrants Detachable per bond Fair value (prior selling) Fair value (post selling) 100% 100 100 102% 10,000 $ Common Stocks Par value $ 100 Fair value $ 110 Additional cash per share $ $ 30 Using the information above, prepare the Journal Entries for the borrower AND the investor Actions to take: 1. Selling of bond and detachable warrants 2. Exercise of warrant. 3. Expiration of warrant
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
