Cherry Corporation Sold $200,000 of 12% Bonds at Par

question 33

Multiple Choice

Cherry Corporation sold $200,000 of 12% bonds at par. Each $1,000 bond carried ten warrants, each of which allows the holder to acquire one share of $10 par common stock for $30 per share. After issuance, the bonds were quoted at 99 ex rights, and the warrants were quoted at $4 each. Cherry Corporation should have assigned to the rights a value of

• A) $8,000.
• B) $7,767.
• C) $7,500.
• D) $5,882.

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Definitions:

Unpleasant Emotions

Feelings that are distressing or causing discomfort, such as sadness, anger, or fear.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and jealousy.

Extraversion

A personality trait characterized by a preference for social interaction, high levels of energy, and positive emotions.

Agreeableness

Agreeableness is a personality trait characterized by trust, altruism, kindness, affection, and other pro-social behaviors.