On January 1, 2021, an entity issued a P3,000,000, 6% convertible bonds at par. The bonds are

Fantastic news! We've Found the answer you've been seeking!

Question:

On January 1, 2021, an entity issued a P3,000,000, 6% convertible bonds at par. The bonds are redeemable at a premium of 10% on December 31, 2024 or it may be converted into ordinary shares on the basis of 50 shares for each P1,000 bond at the option of the holder. The interest rate for an equivalent bond without the conversion rights would have been 10%. If the holders have no intention to exercise the conversion option, the issuance of convertible bonds on January 1, 2021 increased the entity's equity by?

a. P880,568

b. P175,518

c. P73,068

d. P0

Posted Date: Dec 06, 2021 03:00 AM

See More Questions

The equation preceding Eq. (30.27) may be converted into an energy relationship. Multiply both sides of this equation by i = dq/dt. The first term then becomes i2R. Show that the second term can be...
A $100 000 bond is redeemable at par in 14 years, 10 months. If interest on the bond is 7.5% payable semiannually, what is the purchase price to yield 8% com- pounded semiannually? (a) What is the...
A $100 000 bond redeemable at par on October 1, 2038, is purchased on January 15, 2017. Interest is 5.9% payable semi-annually and the yield is 9% compounded semi-annually. (a) What is the purchase...
In your opinion, which companies (healthcare or non-healthcare related) provide superior customer service? Which companies provide average or mediocre customer service? Name the factors most...
In each part, we have given the P-value for a hypothesis test. For each case, refer to Table 9.8 to determine the strength of the evidence against the null hypothesis. a. P = 0.184 b. P = 0.086 c. P...
Should companies be responsible for unemployment caused by their information systems? Why or why not?
Describe the importance and contents of medical records.
Dakota Company experienced the following events during 2018: 1. Acquired $30,000 cash from the issue of common stock. 2. Paid $12,000 cash to purchase land. 3. Borrowed $10,000 cash. 4. Provided...
Present a brief history of the American home products and the formation of the company .how it grew through the 30s and 50s?
In the Chapter 3 Data Analytics Case, you applied Tableau to examine a data set and create calculations to compare two companies profitability. For the case in this chapter, you continue in your role...
. A two-dimensional duct contains a straight sides contraction as in figure below. The depth is constant at 30 cm. At a certain time and incompressible fluid flows in the duct at a rate of 0.3 m/s...
True Or False The plaintiff in a misuse-of-legal-process case was originally the defendant in the cause of action leading up to the misuse-of-legalprocess case.
True Or False A plaintiff suing for private nuisance can always seek to recover compensatory damages or to obtain an injunction.
To what group of persons is a defendant liable if they make a misrepresentation?
What does it mean that the plaintiff must have actively participated in instigating the prosecution in malicious prosecution?
True Or False Offering a better price to a third person, knowing that this could induce this person to breach their contract with the plaintiff, does not constitute interference with contractual...
A thermistor which is made of intrinsic silicon has a resistance of 450 ohms at 300. Estimate its approximate resistance at 250 K, assuming a gap energy of silicon of 1.10 eV.
How do the principles of (a) Physical controls and (b) Documentation controls apply to cash disbursements?
What is the change in value for this security over the four quarters recorded in the highlowclose graph?
Which of the 10 years had the most and least variability between the maximum sales of womens clothing and the minimum for mens, and what were those ranges?
What happened to the average sales figures for jewelry over the 10-year period?

On January 1, 2021, an entity issued a P3,000,000, 6% convertible bonds at par. The bonds are

Question:

Expert Answer:

Assuming that the holders of the convertible bonds have no intention to exercise their conversi... View the full answer

Students also viewed these accounting questions