Accounting Cases

Question 1

Convertible bond nominal (face value): €60 million

Par value of share (nominal per share): €100

Strike price: €6.75

Current stock price: €10

Shares pre-conversion: 100 million

Net debt pre-conversion: €60 million

Answer 1

Question 2

Shareholders equity

Answer 2

Common stock
Additional Paid in capital
OCI
Retained Earnings
Treasury Stock
NCI

Question 3

Inject 100€ Cash from the street

Answer 3

Question 4

We have shares outstanding. We buy the firm how does it affect shares?

Answer 4

Question 5

I have 1000 stocks, 500 options, price of stock 20, premium 30%, strike price 20

How many new stocks do we get ?

How strong is the dilution?

Answer 5