Atlas anglers inc is considering issuing a 15-year

Assignment Help Finance Basics

Reference no: EM13379308

Atlas Anglers Inc. is considering issuing a 15-year convertible bond that will be priced at its $1,000 par value. The bonds have a 6.5% annual coupon rate, and each bond can be converted into 20 shares of common stock. The stock currently sells at $30 a share, has an expected dividend in the coming year of $3, and has an expected constant growth rate of 5.5%. What is the estimated floor price of the convertible at the end of Year 3 if the required rate of return on a similar straight-debt issue is 9.5%?

Reference no: EM13379308

Questions Cloud

A country with a relatively small aggregate demand shock a : a country with a relatively small aggregate demand shock a shift outward in the ad curve may have a substantial

Your final assignment as a financial management intern is : your final assignment as a financial management intern is to apply the knowledge that you acquired while engaging in

The growing use of reserves for future costs and losses : the growing use of reserves for future costs and losses impairs the significance of periodically reported income and

Airbus sold an a400 aircraft to delta airlines a us company : airbus sold an a400 aircraft to delta airlines a u.s. company and billed 30 million payable in six months. airbus is

Atlas anglers inc is considering issuing a 15-year : atlas anglers inc. is considering issuing a 15-year convertible bond that will be priced at its 1000 par value. the

You are the manager of a firm that produces and markets a : you are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. in

If the price of blue toy cars is 5 and the price of pink : if the price of blue toy cars is 5 and the price of pink toy cars is 2 then which of the following consumers will make

Consider a market where supply and demand are given qxs-10 : consider a market where supply and demand are given qxs-10 pxand qxd 56-2px. suppose the government imposes a price

Suppose demand and supply are given by qd 50 -p and : suppose demand and supply are given by qd 50 -p and qs12p-10.a. what are the equilibrium quantity and price in this

User Account

All Pages