Question
Barker Industries issued 5,000 of its $1,000 par value bonds for $1,050, providing total cash proceeds of $5,000,000. Each bond contains 20 detachable stock warrants
Barker Industries issued 5,000 of its $1,000 par value bonds for $1,050, providing total cash proceeds of $5,000,000. Each bond contains 20 detachable stock warrants that allow the bondholder to purchase a share of Barker's common stock for $50. Immediately after the issue, the warrants were selling for $4 each and the bonds without the warrants were selling for $1,010. How much will be credited to Paidin CapitallongStock Warrants? (Round intermediary calculations to four decimal places and your final answer to the nearest dollar.)
The answer is $385350. I want to know how to calculate.
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