Cherry Corporation sold $200,000 of 12% bonds at par. Each $1,000 bond carried ten warrants, each of which allows the holder to acquire one share of $10 par common stock for $30 per share. After issuance, the bonds were quoted at 99 ex rights, and the warrants were quoted at $4 each. Cherry Corporation should have assigned to the rights a value of
A. $8,000.
B. $7,767.
C. $7,500.
D. $5,882.
Answer: B
You might also like to view...
Unconscious reference to one's own cultural values when judging behavioral actions of others in a new and different environment is called
A. self-reference environment. B. self-reference criterion. C. self-reference culture. D. self-reference customs. E. self-reference values.
This term best defines what society expects from business, governments, and nonprofits?
A. organizational citizenship B. relationship C. stewardship D. affiliation
Liabilities can be best described as:
A. The amount expected to be distributed to stockholders. B. The amount owed to creditors. C. The amount of services provided to customers during the year. D. The amount of expenses over the past year.
If you are required to deliver bad news to your employees in person, the best technique is to gather your information and deliver it off the cuff to appear sincere
Indicate whether the statement is true or false