On Jan 1 20X1 Q Ltd Had Issued 500 Debentures

question 7

Multiple Choice

On Jan 1 20X1 Q Ltd had issued 500 debentures at a face amount of $5 000 each, 10% interest payable annually in arrears.There was a premium on issue of $750 per debenture.These debentures were publicly tradable after initial issue.The terms of issue state that the debentures can be bought back directly from the holder upon payment by Q Ltd of a premium of $400 per debenture and accrued interest.On July 1 20X6 Q Ltd bought back 100 of the debentures via the open market (Australian Securities Exchange) where the market price was steady at $4 300.
-What would be the total cash outflow incurred during this buyback by Q Ltd?

• A)$430 000
• B)$495 000
• C)$565 000
• D)None of these numbers

---

Definitions:

Nitro Group

A nitro group is a functional group consisting of a nitrogen atom bonded to two oxygen atoms (−NO2), often contributing to the reactivity of a molecule.

O,p-director

Refers to substituents on an aromatic ring that direct incoming substituents to the ortho and para positions relative to themselves during electrophilic aromatic substitution reactions.

Meta Sigma Complex

A term that is not commonly defined in the field of chemistry, indicating a potential misunderstanding or mislabeling of a concept. NO.

Phenyl Substituent

A functional group consisting of a benzene ring directly attached to the core structure of a molecule, influencing its chemical behavior.