What amount should be assigned to the share warrants issued

Assignment Help Accounting Basics
Reference no: EM133146316

Question - The LAOS COMPANY wants to raise its working capital. After analysis of the available options, the company decides to issue 6,000 shares of P30 per 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 the warrants is P90. What amount should be assigned to the share warrants issued?

Reference no: EM133146316

Questions Cloud

Find total provisions to be reported in the statement : As at 31 December 2020 Magic had paid P1,500,000. Total provisions to be reported in the statement of financial position as of December 31, 2020 is
Basic concepts surrounding building information modelling : Building Information Modelling in the context of the Construction Industry - Discuss the differences in purpose between Building Information Modelling
Make journal entries to record disposal of the equipment : Andy sells this equipment for $12,000 at the end of the current year. Make journal entries to record both current year's depreciation and disposal of equipment
Boundaries of industries are being redefined : With rapid changes in technology, the boundaries of industries are being redefined. What industry is the company Google in? Who are Google's main competitors to
What amount should be assigned to the share warrants issued : The market value of the preference shares without the warrants is P90. What amount should be assigned to the share warrants issued
Conduct market research using secondary data : The European Union is home to more than 500 million (mostly well-heeled) consumers, making it one of the largest and most attractive markets worldwide.
Manager foster effective team collaboration : Effective collaboration is at the center of it all. Managers must have the right skills to help foster effective team collaboration within their department.
Calculate the weighted average cost of capital of miller : Calculate the weighted average cost of capital of Miller ple according to the traditional view of capital structure and analyse the implications of calculation
Calculate the cost of goods sold for the february : On February 15th, the Boy Bike Co. sold 44 bikes for $360 each. Calculate the Cost of Goods Sold for the February 15th sale using FLFO

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd