What would be the total assets of the company

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Question 1: Mr. X establishes a company with 220.000 TL of cash. 190.000 TL of this cash amount is paid to a supplier for an equipment purchase. Then the company has a great opportunity to enter into a project, but it has limited cash to invest in that project. Therefore, it decides to issue bonds and shares to the investors in order to raise funds. On the bond side, the company issues a 30.000 TL of 3-year zero-coupon bonds. The market yield is 10%. On the share side, however, the company issues 50.000 TL of common stock (par value: 1 TL each) at a price of 2,4 TL. At the time of these transactions are completed, what would be the total assets of the company?

a) 362.540 TL

b) 370.000 TL

c) 355.080 TL

d) 340.000 TL

e) Other:

 

Reference no: EM132861342

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