On July 1, 2008 Samantha Corporation issued 2,000,000 of 7% bonds payable in 10 years. The bonds pay interest semiannually. Each 1000 bond includes a detachable stock purchase right. Each right gives the bondholder the option to purchase for P30, one share of 1 par value common stock at any time during the next 10 years. The bonds were sold for 2,000,000. The value of the stock purchase rights at the time of issuance was 100,000, while the value of the bonds without the warrants is 97. How many warrants were issued? 11. What is the carrying value of the bonds at the end of 2008? 12. If the bondholder will exercise all his rights, the share premium will be ______
On July 1, 2008 Samantha Corporation issued 2,000,000 of 7% bonds payable in 10 years. The bonds pay interest semiannually. Each 1000 bond includes a detachable stock purchase right. Each right gives the bondholder the option to purchase for P30, one share of 1 par value common stock at any time during the next 10 years. The bonds were sold for 2,000,000. The value of the stock purchase rights at the time of issuance was 100,000, while the
How many warrants were issued?
11. What is the carrying value of the bonds at the end of 2008?
12. If the bondholder will exercise all his rights, the share premium will be ______
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