Question
Warrants ReviewOn January 1st20X1 we issued $100,000 of 10 year, 6% bonds@ 103. Each$1,000 bond has 10 detachable warrants.Each warrantallows the holder to acquire one
Warrants ReviewOn January 1st20X1 we issued $100,000 of 10 year, 6% bonds@ 103. Each$1,000 bond has 10 detachable warrants.Each warrantallows the holder to acquire one share of $10par common stock for $40per share.Market ValuesBond-@99 ex rightsWarrants-$10 eachCommon Stock-$45 each (atexercisedate)RequiredRecord the issuance of the bond. Next assume500 warrants are redeemed.
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Management Accounting For Decision Makers
Authors: Dr Peter Atrill, Eddie McLaney
6th Edition
0273731521, 9780273731528
