Morris Ltd. issued $4,000,000, six-year, 8% convertible bonds at par. Bonds pay interest annually. Each $1,000 bond is convertible into 200 of Morris's no par-value common shares, which are currently trading at $25. The current market rate for similar non-convertible bonds is 10%. Assuming Morris follows IFRS, the value to be recorded for the conversion option upon issuance of the bonds is: Question 3 options: $348,421 $320,000 $303,267 $0 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Morris Ltd. issued $4,000,000, six-year, 8% convertible bonds at par. Bonds pay interest annually. Each $1,000 bond is convertible into 200 of Morris's no par-value common shares, which are currently trading at $25. The current market rate for similar non-convertible bonds is 10%. Assuming Morris follows IFRS, the value to be recorded for the conversion option upon issuance of the bonds is: Question 3 options: $348,421 $320,000 $303,267 $0 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 20E
Related questions
Question
Morris Ltd. issued $4,000,000, six-year, 8% convertible bonds at par. Bonds pay interest annually. Each $1,000 bond is convertible into 200 of Morris's no par-value common shares, which are currently trading at $25. The current market rate for similar non-convertible bonds is 10%. Assuming Morris follows IFRS, the value to be recorded for the conversion option upon issuance of the bonds is: Question 3 options: $348,421 $320,000 $303,267 $0
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
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