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How much shareholders equity will change by issuing bonds

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DC LTD., an IFRS reporting company, issued $ 4,000,000, 5-year, 8% convertible bonds at par. Bonds pay semi-interest annually. Each $ 1,000 bond is convertible to 200 of DC LTD.'s no par value common shares, which are currently trading at $ 25 each. The current market rate for similar non-convertible bonds is 10%.

Problem 1: Determine by how much, if at all, shareholders' equity will change by issuing these bonds.

Reference no: EM132955377

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