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  3. at the start of the year, shamrock company issued

At the start of the year, Shamrock Company issued $18,500,000 of 12% bonds along with...

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Accounting

At the start of the year, Shamrock Company issued $18,500,000 of 12% bonds along with detachable warrants to buy 1,400,000
shares of its $10 par value common stock at $18 per share. The bonds mature over the next 10 years, starting one year from date of
issuance, with annual maturities of $1,850,000. At the time, Shamrock had 9,600,000 shares of common stock outstanding. The
company received $21,430,000 for the bonds and the warrants. For Shamrock Company, 12% was a relatively low borrowing rate. If
offered alone, at this time, the bonds would have sold in the market at a 22% discount.
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