Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 31, 2024

On 1 January 2021, an entity issued convertible loan notes for $100,000. Interest is payable annually in arrears at 4%. The market rate of interest

On 1 January 2021, an entity issued convertible loan notes for $100,000. Interest is payable annually in arrears at 4%. The market rate of interest for similar loan notes with no conversion rights attached is 7%. The loan notes are redeemable on 31 December 2024. the equity component is

a. 10162 b. 444 c. 12000 d. 35,363

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Understanding And Practice

Authors: Robert Perks

4th Edition

9780077139131

Students also viewed these Accounting questions

Question

★★★★★

Data-2-Go manufactures and sells flash drives. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month:...

Answered: 1 week ago

Question

★★★★★

Milton Company reported inventory of $60,000 at the beginning of 2014. During the year, it purchased inventory of $625,000 and sold inventory for $950,000. A count of inventory at the end of the year...

Answered: 1 week ago

Question

★★★★★

Why is it necessary to know the profitability of customers? If all the products of a company are profitable, shouldnt its customers also be profitable? Explain.

Answered: 1 week ago

Question

★★★★★

Human resource testing. Although controversial and the subject of some recent law suits (e.g., Satchell et al. v. FedEx Express), some human resource departments administer standard IQ tests to all...

Answered: 1 week ago

Question

★★★★★

Complete the chart below, indicating the Calvet Trusts entity accounting income for each of the alternatives. For this purpose, use the following information. Interest income, taxable Interest...

Answered: 1 week ago

Question

★★★★★

Suppose you buy a bond of General Electric at a price of $990. The bond pays coupons semi-annually, has an annual coupon rate of 6%, a face value of $1,000 and will mature in six months time. You...

Answered: 1 week ago

Question

★★★★★

John Appleton owns a sod company based in Pocatello, Idaho. He sells his sod by truckload to 11 different nurseries across Southern Idaho from Payette to Idaho Falls. His company started with a sod...

Answered: 1 week ago

Question

★★★★★

What total amount of current asset should be reported on December 31, 2020? * Base on Problem 1 (Pharsa Company), what amount should be reported as Noncurrent Asset on December 31, 2020? * On...

Answered: 1 week ago

Question

★★★★★

How does this independent work further your course of study? What specific courses have you taken which prepare you for the work? What qualifications do you have to prepare you for this directed...

Answered: 1 week ago

Question

★★★★★

The bar graph shows that life expectancy, the number of years newborns are expected to live, in a particular region has increased dramatically since ancient times. Find the percent increase in...

Answered: 1 week ago

Question

★★★★★

The rise of e-commerce and aircargo (2015- present) and movetowards a sustainable futurewrite INTRODUCTION (500 words) Air cargo E-commerce Relationship between air cargoand E-commerce Sustainability...

Answered: 1 week ago

Question

★★★★★

Capital Weightings and WACC Calculation The market values of KO's common stock and preferred stock are $211,296 million and $101 million, respectively. Coca-Cola has total debt outstanding with a...

Answered: 1 week ago

Question

★★★★★

(12 points) 4. The demand and supply for the cleaning and grooming of a pet are given for two prices Demand Supply Price 680 815 105 780 735 85 a. Find the linear demand equation. b. Find the linear...

Answered: 1 week ago

Question

★★★★★

How to silve this ? 14. You have just purchased a 10-year zero-coupon bond with a yield to maturity of 10% and a par value of $1,000. What would your rate of return at the end of the year be if you...

Answered: 1 week ago

Question

★★★★★

a. Why does the Wi-Fi Alliance release compatibility testing profiles in waves instead of combining the entire standards features initially? 27a1.) An 802.11ac Wi-Fi compatibility testing profile...

Answered: 1 week ago

Question

★★★★★

The same study referred to in Question 10 also discovered that ethical standards are per ceived by business people to strengthen a companys competitive position. Briefly explain how this could be so.

Answered: 1 week ago

Question

★★★★★

Consider the following scenario. Tony Howard, a CPA, has completed the audit of Galaxy Enterprise and has signed an opinion letter stating that Galaxys books have been prepared in conformance with...

Answered: 1 week ago

Question

★★★★★

A major accounting firm commissioned an extensive poll to find out how people under stand various business terms. According to the study, 34 percent of the shareholders ques tioned thought that the...

Answered: 1 week ago

Previous Question Next Question