Question
In: Accounting
OGOYA Ltd is a fast-growing company in need of new financing to fund its expansion plans....
OGOYA Ltd is a fast-growing company in need of new financing to fund its expansion plans. It is hoping to raise $10 million dollars from a debt issuance. It is considering the following options:
A Issue 2-year 8% debentures at par on January 1, 2019. Interest payments are made annually at the end of each year. The debenture matures on December 31, 2020.
B Issue 2-year 4% convertible debentures at par on January 1, 2019. The debentures can be converted into 10 million $1 shares at maturity on December 31, 2020. Interest payments are made annually at the end of each year. Without the conversion feature, the debenture would be priced the same as option A.
Question What's the journal entries of A and B
Solutions
ekkarill92 answered 1 year agoRelated Solutions
OGOYA Ltd is a fast-growing company in need of new financing to fund its expansion plans....
OGOYA Ltd is a fast-growing company in need of new financing to
fund its expansion plans. It is hoping to raise $10 million dollars
from a debt issuance. It is considering the following options:
A. Issue 2-year 8% debentures at par on January 1, 2019.
Interest payments are made annually at the end of each year. The
debenture matures on December 31, 2020.
B. Issue 2-year 4% convertible debentures at par on January 1,
2019. The debentures can be converted...
OGOYA Ltd is a fast-growing company in need of new financing to fund its expansion plans....
OGOYA Ltd is a fast-growing company in need of new financing to
fund its expansion plans. It is hoping to raise $10 million dollars
from a debt issuance. It is considering the following options:
A Issue 2-year 8% debentures at par on January 1, 2019. Interest
payments are made annually at the end of each year. The debenture
matures on December 31, 2020.
B Issue 2-year 4% convertible debentures at par on January 1,
2019. The debentures can be converted...
OGOYA Ltd is a fast-growing company in need of new financing to fund its expansion plans....
OGOYA Ltd is a fast-growing company in need of new financing to
fund its expansion plans. It is hoping to raise $10 million dollars
from a debt issuance. It is considering the following options:
A Issue 2-year 8% debentures at par on January 1, 2019. Interest
payments are made annually at the end of each year. The debenture
matures on December 31, 2020.
B Issue 2-year 4% convertible debentures at par on January 1,
2019. The debentures can be converted...
Gravity, Inc., needs to raise $46.5 million to fund its expansion plans. The company will sell...
Gravity, Inc., needs to raise $46.5 million to fund its
expansion plans. The company will sell shares at a price of $27.70
in a general cash offer and the company's underwriters will charge
a spread of 7 percent. How many shares need to be sold?
Aspen Australia Pty Ltd is a fast-growing drug company. The company forecasts that in the next...
Aspen Australia Pty Ltd is a fast-growing drug company. The
company forecasts that in the next 3 years its growth rates will be
30 per cent, 28 per cent and 24 per cent, respectively. Last week
it declared a dividend of $1.67. After 3 years, the company expects
a more stable growth rate of 8 per cent for the next several years.
The required rate of return is 14 per cent.
a Calculate the dividends for the next 3 years,...
Prestige Productions Ltd is planning an expansion internationally and is considering its financing options. One senior...
Prestige Productions Ltd is planning an expansion
internationally and is considering its financing options. One
senior manager of the company has advised the Board of Directors
that using debt is cheaper than equity as interest is tax
deductible, whereas dividends are not. As a shareholder of Prestige
Productions Ltd, do you agree with this statement? Why or why
not?
A fast food chain plans to add a new item to its menu. There are three...
A fast food chain plans to add a new item to its menu. There are
three possible campaigns for the new menu item. They introduced the
product at locations in several randomly selected markets. A
different promotion was used at each location, and the weekly sales
of the new item are recorded for the first four weeks. Management
is interested in determining the differences in the promotion
campaigns with regard to total sales. In addition, it wants to know
if...
The expansion plans of IUKL call for the/company to add capacity for a new programs in...
The
expansion plans of IUKL call for the/company to add capacity for a
new programs in 6 years. The company wants to have RM500,000,
available before it announces the program. If A the company sets
aside RM60,000 now and RM95,000 in year 2, what uniform annual
amount -> will it have to put in an account in years 3 through 5
to have the RM500,000? Assume the account earns interest at 9% per
year COMPOUNDED MONTHLY.
plz solve in detail...
b) Lois Company Ltd is a fast-growing Ghanaian Multinational Company looking for short term working capital...
b) Lois Company Ltd is a fast-growing Ghanaian Multinational
Company looking for short term working capital loan to support its
expansion to other West African Countries. You have just been hired
as a Senior Financial Analyst to help the firm secure a cheap
source of funding to achieve its objective. The CEO of this company
is concerned about the high interest rates in Ghana and has asked
you to borrow in Dollars since USD interest rates have become
cheaper since...
Lois Company Ltd is a fast-growing Ghanaian Multinational Company looking for short term working capital loan...
Lois Company Ltd is a fast-growing Ghanaian Multinational
Company looking for short term working capital loan to support its
expansion to other West African Countries. You have just been hired
as a Senior Financial Analyst to help the firm secure a cheap
source of funding to achieve its objective. The CEO of this company
is concerned about the high interest rates in Ghana and has asked
you to borrow in Dollars since USD interest rates have become
cheaper since the...
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