indebtedness: ated disclosed the following information about some of its The fair value of convertible subordinated debentures is estimated using quoted market prices. Book amounts and estimated fair values of our financial instruments other than those for which book amounts approximate fair values as noted above are as follows (in thousands) Book Amount $164,791 2024 Estimated Fair Value $ 301,923 Book Amount $ 157,449 2023 Required: What amount of interest expense will Health Foods accrue on the debentures during fiscal year 2025? Note: Enter your answer in dollars not in thousands. Estimated Fair Value $206,396 Convertible subordinated debentures In addition, the company disclosed the following: We have outstanding zero coupon convertible subordinated debentures which had a book amount of approximately $164.8 million and $157.4 million on September 26, 2024, and September 28, 2023, respectively. The debentures have an effective yield to maturity of 6 percent and a principal amount at maturity on March 2, 2038, of approximately $314.8 million. The debentures are convertible at the option of the holder, at any time on or prior to maturity, unless previously redeemed or otherwise purchased. The debentures have a conversion rate of 10.94 shares per $1,000 principal amount at maturity, representing 3,291,632 shares. The debentures may be redeemed at the option of the holder on March 2, 2028, or March 2, 2033, at the issue price plus accrued original discount totaling approximately $194 million and $247 million, respectively.
indebtedness: ated disclosed the following information about some of its The fair value of convertible subordinated debentures is estimated using quoted market prices. Book amounts and estimated fair values of our financial instruments other than those for which book amounts approximate fair values as noted above are as follows (in thousands) Book Amount $164,791 2024 Estimated Fair Value $ 301,923 Book Amount $ 157,449 2023 Required: What amount of interest expense will Health Foods accrue on the debentures during fiscal year 2025? Note: Enter your answer in dollars not in thousands. Estimated Fair Value $206,396 Convertible subordinated debentures In addition, the company disclosed the following: We have outstanding zero coupon convertible subordinated debentures which had a book amount of approximately $164.8 million and $157.4 million on September 26, 2024, and September 28, 2023, respectively. The debentures have an effective yield to maturity of 6 percent and a principal amount at maturity on March 2, 2038, of approximately $314.8 million. The debentures are convertible at the option of the holder, at any time on or prior to maturity, unless previously redeemed or otherwise purchased. The debentures have a conversion rate of 10.94 shares per $1,000 principal amount at maturity, representing 3,291,632 shares. The debentures may be redeemed at the option of the holder on March 2, 2028, or March 2, 2033, at the issue price plus accrued original discount totaling approximately $194 million and $247 million, respectively.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:indebtedness:
The fair value of convertible subordinated debentures is estimated using quoted market prices. Book amounts and estimated fair
values of our financial instruments other than those for which book amounts approximate fair values as noted above are as follows (in
thousands)
Convertible subordinated debentures
Hcorporated disclosed the following information about some of its
Book Amount
$164,791
Interest expense in the year of 2025
2024
Estimated Fair
Value
$ 301,923
Book Amount
$157,449
Required:
What amount of interest expense will Health Foods accrue on the debentures during fiscal year 2025?
Note: Enter your answer in dollars not in thousands.
2023
In addition, the company disclosed the following:
We have outstanding zero coupon convertible subordinated debentures which had a book amount of approximately $164.8 million and
$157.4 million on September 26, 2024, and September 28, 2023, respectively. The debentures have an effective yield to maturity of 6
percent and a principal amount at maturity on March 2, 2038, of approximately $314.8 million. The debentures are convertible at the
option of the holder, at any time on or prior to maturity, unless previously redeemed or otherwise purchased. The debentures have a
conversion rate of 10.94 shares per $1,000 principal amount at maturity, representing 3,291,632 shares. The debentures may be
redeemed at the option of the holder on March 2, 2028, or March 2, 2033, at the issue price plus accrued original discount totaling
approximately $194 million and $247 million, respectively.
Estimated Fair
Value
$ 206,396
A
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