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On December 31, 2017, Atimonan Company issued 8,000 of its 8%, 10-year P1,000 face value bonds with detachable share warrants at 120. Each bond carried
On December 31, 2017, Atimonan Company issued 8,000 of its 8%, 10-year P1,000 face value bonds with detachable share warrants at 120. Each bond carried a detachable warrant for two shares of Atimonans P100 par value ordinary shares at a specified option price of P150. Immediately after issuance, the market value of the bonds ex-warrants was P8,100,000 and the market value of the warrants was P900,000. The issuance of the bonds increased Atimonans equity by
P960,000
P 900,000
P 0
P1,500,000
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