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On December 1, 2018, Jones Company issued at 105, nine hundred of its 10%, $1,000 bonds. Attached to each bond was one detachable stock warrant
On December 1, 2018, Jones Company issued at 105, nine hundred of its 10%, $1,000 bonds. Attached to each bond was one detachable stock warrant entitling the holder to purchase 20 shares of Jones' common stock. On December 1, 2018, the market value of the bonds, without the stock warrants, was 90, and the market value of each stock purchase warrant was $10. The allocation of the value of the warrants would be:
What is the allocation of the value of the bonds?
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