l****q
发帖数: 767 | 1 The example is from Wiley MODULE 11, page 360:
Units of one bond and one warrant (to buy 10 shares of stock at $50/share)
are issued for $1030. Therafter, warrants trade at $40 and the bonds at $960
. The ralative market value of the warrants is 4% and the relative market
value of the bonds is 96%. Thus, $41.20 (.4X$1030) of the issue price is
assigned to the warrants.
DR Cash 1030
DR Bond discount 11.20
CR Bonds payable 1000
CR Paid in capital-stock warrants 41.20
If one warrant | C*****U
发帖数: 3512 | 2 I don't have the textbook with me now but think that Becker mentions this
briefly in Chapter 7 (Stockholder's Equity, and it should be on the upper
portion of page next to Subscription， or the page after). I recall that
because I noticed that Becker uses the term (warrant) in there and thus went
back to Chapter 5 of Bond and compared them.
Anyway, they don't provide too much deails either, but my understanding is $
54 of stock price is a "fact", and warrant is supposed to be equivalent to
stock
【在 l****q 的大作中提到】
: The example is from Wiley MODULE 11, page 360:
: Units of one bond and one warrant (to buy 10 shares of stock at $50/share)
: are issued for $1030. Therafter, warrants trade at $40 and the bonds at $960
: . The ralative market value of the warrants is 4% and the relative market
: value of the bonds is 96%. Thus, $41.20 (.4X$1030) of the issue price is
: assigned to the warrants.
: DR Cash 1030
: DR Bond discount 11.20
: CR Bonds payable 1000
: CR Paid in capital-stock warrants 41.20
| l****q
发帖数: 767 | 3 Thanks!
So, when exercising the warrants, can I make the JE like this?
DR Cash 50
DR APIC-warrants 4
CR Common stock parX1
CR Paid-in excess (plug) |
|
