On August 1, 2018, Lane Corporation called its 10% convertible bonds for conversion. The $7,000,000 par bonds were converted into 280,000 shares of $20 par common stock. On August 1, there was $700,000 of unamortized premium applicable to the bonds. The fair value of the common stock was $20 per share. Ignore all interest payments. 2. Packard, Inc. decides to issue convertible bonds instead of common stock. The company issues 10% convertible bonds, par $3,000,000, at 97. The investment banker indicates that if the bonds had not been convertible they would have sold at 94. 3. Gomez Company issues $8,000,000 of bonds with a coupon rate of 8%. To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $1,000 bond sold. It is estimated that the value of the bonds without the warrants is $7,897,000 and the value of the warrants is $483,000. The bonds with the warrants sold at 101.
https://collegenursingpapers.com/wp-content/themes/fildisi/images/empty/thumbnail.jpg 150 150 admin admin https://secure.gravatar.com/avatar/c0dc0b9fda5cdec57c4974120ec0b480?s=96&d=mm&r=g