On March 1, 2018, Erik Corp. issued $1,000,000 of 10% nonconvertible bonds at 103, due...
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On March 1, 2018, Erik Corp. issued $1,000,000 of 10% nonconvertible bonds at 103, due on February 28, 2028. Each $1,000 bond was issued with 30 detachable stock warrants, each of which entitled the holder to purchase, for $50, one share of Erik's $25 par common stock. On March 1, 2018, the market price of each warrant was $4. By what amount should the bond issue proceeds increase shareholders' equity? clear steps and calculations please
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