Knowledge Check 01 Boyd Corp. issued $1,500,000 of 9% nonconvertible bonds at 107, due in 10 years. Each $1,000 bond was issued with 45 detachable stock warrants, each of which entitled the holder to purchase, for $70, one share of Boyd’s $40 par common stock. The market price of each warrant was $7. How much of the proceeds should be allocated to the warrants issued?

$472500

Explanation:

The following can be gotten based on the information given in the question:

The number of bonds issued will be:

= $1500000/$1000

= 1500 bonds

Fair value of warrant = $7

Number of stock warrants = 45

The proceed to be allocated to the warrant issued will be the total number of warrant for every bond multiplied by the number of bond that are issued which is also multiplied with the warrants market price. This will be:

= 45 × 1500 × 7

= $472,500

decentralization can the employees to get more involved in the business decision making

a

b

b

a

c

b

d

d

none of these are correct, as they are all sources of american law

a