- This topic has 1 reply, 2 voices, and was last updated 2 years ago by
Stephen Widberg.
Stephen Widberg.Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
misbahkiran
- Topics: 109
- Replies: 194
- ☆☆☆
Two million B share are issued with nominal value of 1 $ each. these are redeemable in two years time. Issuer has choice as to method of redemption, it may either be redeem for cash at their nominal value, or it may issue 1 million share in settlement.
A share are currently valued at 10 per share and lowest price of A share since its formation has been 5$ per share.
what will be share B classification?
Stephen Widberg
- Topics: 10
- Replies: 2645
- ☆☆☆☆☆
Two questions:
1. Does the instrument have a contractual obligation to deliver cash? No.
2. Will or may the instrument be settled in the issues own equity instruments? YesSo I would go for equity.
misbahkiran
Stephen WidbergViewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.