Question
Stannis Inc has $300,000 (book value) of convertible bonds outstanding, with no conversion fee. The conversion ratio is 50 shares per $1000 of bonds. Transaction:
Stannis Inc has $300,000 (book value) of convertible bonds outstanding, with no conversion fee. The conversion ratio is 50 shares per $1000 of bonds.
Transaction: A bondholder converts $10,000 of bonds into 500 shares of common stock. The common stock has par value of $1, and market price of $45.
How are the following affected by the transaction? (+, -, or O)
Cash
Non-Cash Assets
Liabilities
Contributed Capital
Retained Earnings
Revenue
Expenses
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Cash Non cash assets Liabilities Contributed capital Retained earnings Revenue Expenses Explanation ...
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Principles of Corporate Finance
Authors: Richard A. Brealey, Stewart C. Myers
7th edition
72869461, 72467665, 9780072467666, 978-0072869460
