The Vermillion Inc. wants to raise its working capital. The Company decides to issue 6,000 shares of Php30 par preference shares with detachable warrants. The package the shares and warrants sell for Php120. The warrants enable the holder to purchase 6,000 shares of Php10 par ordinary shares at Php40 per share immediately. Immediately following the issuance of the shares, the share warrants are selling at Php10 per share. The market value of the preference share without the warrants is Php90.
The Vermillion Inc. wants to raise its working capital. The Company decides to issue 6,000 shares of Php30 par preference shares with detachable warrants. The package the shares and warrants sell for Php120. The warrants enable the holder to purchase 6,000 shares of Php10 par ordinary shares at Php40 per share immediately. Immediately following the issuance of the shares, the share warrants are selling at Php10 per share. The market value of the preference share without the warrants is Php90.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What should be credited to Ordinary Share Warrants Outstanding
![The Vermillion Inc. wants to raise its working capital. The Company decides to issue
6,000 shares of Php30 par preference shares with detachable warrants. The package of
the shares and warrants sell for Php120. The warrants enable the holder to purchase
6,000 shares of Php10 par ordinary shares at Php40 per share immediately.
Immediately following the issuance of the shares, the share warrants are selling at
Php10 per share. The market value of the preference share without the warrants i
Php90.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2aad1258-e9bd-4e64-9d60-c70e8aa30d66%2F3de7673a-9d90-4bd2-9070-86268159c525%2Fexiha08_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Vermillion Inc. wants to raise its working capital. The Company decides to issue
6,000 shares of Php30 par preference shares with detachable warrants. The package of
the shares and warrants sell for Php120. The warrants enable the holder to purchase
6,000 shares of Php10 par ordinary shares at Php40 per share immediately.
Immediately following the issuance of the shares, the share warrants are selling at
Php10 per share. The market value of the preference share without the warrants i
Php90.
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