Knowledge Check 01 Boyd Corporation 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? Amount of proceeds allocated to the warrants issued
Knowledge Check 01 Boyd Corporation 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? Amount of proceeds allocated to the warrants issued
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Knowledge Check 01
Boyd Corporation 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?
Amount of proceeds allocated to the warrants issued
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