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Business, 21.08.2020 15:01 KRAL165

Bluebell Corporation has outstanding convertible bonds with a face value of $9,000. It has just paid interest on these bonds, and the bonds have a book value of $9,500. Each $1,000 bond is convertible into 30 shares of common stock (par value $20 per share). All of the bonds are converted into common stock when the market value of Bluebell's common stock is $25 per share. Under the market value method, what value would be given to additional paid-in capital from bond conversion?

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Bluebell Corporation has outstanding convertible bonds with a face value of $9,000. It has just paid...
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