Beta4 Incorporation, a hypothetical company, issued $6 million of 8% bonds on February 1, 2004 which are
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Beta4 Incorporation, a hypothetical company, issued $6 million of 8% bonds on February 1, 2004 which are due in 8 years. At the time of issuance, the bonds were quoted 99 in the market. Accompanying each $1,000 bond were 15 warrants. Each warrant permitted the holder to buy one share for $0.5 par common stock at $20 per share. Suppose that 80% of the warrants were exercised when market price of Beta4 Incorporation share was $25. How much share capital company will raise due to warrant exercise of the warrant holders?
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
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