ABC Holdings plans to sell 60,000 units, each unit consisting of a RM1,000 debenture and 15, 7-year warrants. Each warrant allows the holder to purchase one common-share at RM30. If the stock price goes to RM38 and all warrants were exercised, what is the total capital raised by ABC
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ABC Holdings plans to sell 60,000 units, each unit consisting of a RM1,000 debenture and 15, 7-year warrants. Each warrant allows the holder to purchase one common-share at RM30. If the stock price goes to RM38 and all warrants were exercised, what is the total capital raised by ABC
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- DCF Enterprises Inc.'s capital structure consists of 18 million shares of common stock and 1 million warrants. Each warrant entitles the holder to acquire one share of common stock for $17 if exercised. The stock is currently trading at $26, and each warrant is worth $10. And what's the company's new value?What is the current price of the stock?DCF Enterprises Inc.'s capital structure consists of 18 million shares of common stock and 1 million warrants. Each warrant entitles the holder to acquire one share of common stock for $17 if exercised. The stock is currently trading at $26, and each warrant is worth $10. And what's the company's new value?What is the current price of the stock? AsapDCF Enterprises Inc.'s capital structure consists of 18 million shares of common stock and 1 million warrants. Each warrant entitles the holder to acquire one share of common stock for $17 if exercised. The stock is currently trading at $26, and each warrant is worth $10. What is the company's new value? What is the current price of the stock? Asap
- Superior Clamps, Inc., has a capital structure consisting of 7 million shares common stock and 900,000 warrants. Each warrant gives its owner the right to purchase one share of newly issued common stock for an exercise price of $25. The warrants are European and will expire one year from today. The market value of the company's assets is $165 million, and the annual variance of the returns on the firm's assets is .20. Treasury bills that mature in one year yield a continously compounded interest rate of 7 percent. The company does not pay a dividend. Use the Black Scholes model to determine the value of a single warrant.The Land Company wants to raise its working capital. After analysis of the available options, the Company decides to issue 6,000 shares of P30 par preference shares with detachable warrants. The package of the shares and warrants sells for P120. The warrants enable the holder to purchase 6,000 shares of P10 par ordinary shares at P40 per share. Immediately following the issuance of the shares, the share warrants are selling at P10 per share. The market value of the preference shares without warrant is P90.1. What amount should be assigned to the share warrants issued?2. Assuming that only 80% of the warrants are exercised, the entry to record the exercise of the warrants should include a?Sampaguita is authorized to issue P1,000,000 share capital divided into 10,000 shares with P100 par. If 2,000 shares were sold on cash basis at P150 per share, the gain to be part of the accumulated profits is ____________.
- PENTA FOUR Ltd. has currently an all equity structure consisting of 15,000 equity shares of Rs.100 each. The management is planning to raise another Rs. 25 lakhs to finance a major programme of expansion and is considering three alternative methods of financing: i) To issue 25,000 equity shares of Rs.100 each. ii) To issue 25,000, 8% debentures of Rs.100 each. iii) To issue 25,000, 8% preference shares of Rs.100 each. The company’s expected earnings before interest and taxes will be Rs.8 lakhs. Assuming a corporate tax rate of 46%, determine the earnings per share (EPS), in each alternative and comment which alternative is best and why?Suppose a company purchases 2,000 shares of its own $1 par value common stock for $16 per share. The company then resells 400 of these shares for $20 per share. Which of the following is recorded at the time of the resale? a. Credit Common Stock for $400. b. Credit Treasury Stock for $8,000. c. Credit Common Stock for $8,000. d. Credit Additional Paid-In Capital for $1,600.On January 1, 2021, Kat Company has decided to raise additional capital by issuing P5,000,000 face value, 5 year bonds with interest rate of 12% payable annually on December 31. To help the sale of the bonds, share warrants are issued – one warrant for each P1,000 bond sold. The warrant entitles the holder to purchase 5 shares at P100 per share. The par value of the share is P50. It is reliably determined that the value of the warrants is P30 each time of issuance of the bonds. The bonds are sold for P5,100,000 with warrants but would have sold only at P4,657,000 without warrants with 14% effective yield. On December 31, 2021, 60% of the share warrants were exercised and the remaining warrants expire on April 1, 2022. 1. The total share premium to be credited to share premium – issuance on December 31, 2021 is: 2. The carrying amount of the bonds as of December 31, 2022 is:
- Laos Company wants to raise its working capital. After analysis of the available options, the Company decides to issue 6,000 shares of P30 par preference shares with detachable warrants. The package of the shares and warrants sells for P120. The warrants enable the holder to purchase 6,000 shares of P10 par ordinary shares at P40 per share. Immediately following the issuance of the shares, the share warrants are selling at P10 per share. The market value of the preference shares without warrant is P90.What amount should be assigned to the share warrants issued?Tiktok Company issued 10,000 shares of its P5 Par value common stock having market value of P25 per share and 15,000 shares of its P15 par value preferred stock having a market value of P20 per share for a lump sum of P480,000. How much of the proceeds would be allocated to the common stock?XYZ Corporation issued 1,000 shares of common stock with a par value of $10 per share. If the company received $15 per share from the issuance, what is the total amount of additional paid-in capital?
