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andreyandreev [35.5K]
4 years ago
15

Bonds can be issued with detachable warrants. When this occurs, how should the cash received at the issuance be accounted for: M

ultiple Choice All of the proceeds are allocated to the bonds. The proceeds from the bond issue are allocated between the bonds and the warrants on the basis of their relative face values. A nominal amount is allocated to the warrants. The proceeds from the bond issue are allocated between the bonds and the warrants on the basis of their relative market values.
Business
1 answer:
Temka [501]4 years ago
5 0

Answer:

The proceeds from the bond issue are allocated between the bonds and the warrants on the basis of their relative market values.

Explanation:

Bonds are securities issued by the company where investor can invest in such securities and can earn interest.

Warrants are rights which states that on redemption of bonds it shall be converted into company's shares.

When bonds are issued with detachable warrants, that means there is a  basic amount  of bonds and warrants. Also, each shall be accounted separately.

Bond issue of these bonds includes value of bonds that shall be accounted and added to value of bonds, and  the value of warrants shall be accounted in warrants.

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<h3>Requirements of Negotiability </h3>
  • The first of the four major considerations is whether or not a paper is negotiable, and it is one that nonlawyers must address.
  • Auditors, retailers, and financial institutions frequently handle notes and checks and must make quick decisions about negotiability.
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Hence, the instrument that Shawn must use is “payable to the order of” before the name of the payee.

To learn more about the Negotiation instrument refer to:

brainly.com/question/9312091

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2 years ago
The Wilmoths plan to purchase a house but want to determine the after-tax cost of financing its purchase. Given their projected
iVinArrow [24]

Answer:

the annual after-tax cost of financing the purchase of the home is $23,638.40

Explanation:

The computation of the annual after-tax cost of financing the purchase of the home is shown below:

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We simply applied the above formula

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Elenna [48]
Answer:
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Answer:

Option "C" is the correct answer to the following statement.

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