Boyd Corporation issued $1,500,000 of 9% nonconvertible bonds at 107, due in 10 years. Each $1,000...

 

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Boyd Corporation issued $1,500,000 of 9% nonconvertible bonds at 107, due in 10 years. Each $1,000 bond was issued with 45 detachable stock warrants, each of which entitled the holder to purchase, for $70, one share of Boyd's $40 par common stock. The market price of each warrant was $7. How much of the proceeds should be allocated to the warrants issued? Amount of proceeds allocated to the warrants issued Boyd Corporation issued $1,500,000 of 9% nonconvertible bonds at 107, due in 10 years. Each $1,000 bond was issued with 45 detachable stock warrants, each of which entitled the holder to purchase, for $70, one share of Boyd's $40 par common stock. The market price of each warrant was $7. How much of the proceeds should be allocated to the warrants issued? Amount of proceeds allocated to the warrants issued

Answer rating: 100% (QA)

Nos of bond issued 1500000 1000 1500 bonds Number of stock warrants for each bond... View the full answer