Mutchler Corporation plans a $ 12,000,000 bond issue that has a carrying value of $ 11,232,125 as

Question:

Mutchler plans a $ 12,000,000 bond issue that has a carrying value of $ 11,232,125 as of September 1, 2011. For each of the following assumptions, describe cash flows that occur and the impact each scenario would have on Mutchler’s budgeted balance sheet. Consider each scenario an independent event.
Required:
A. Mutchler Corporation’s bonds have a call price of 102 and on September 1, 2011, the plans to exercise the call feature on the entire bond issue.
B. Mutchler Corporation’s bonds have a 50-to-1 conversion feature; that is, one bond is convertible into 50 shares of Mutchler Corporation’s common stock. On September 1, 2011, Mutchler predicts that the bondholders will convert 25 percent of the bonds into common stock.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...