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Calculate converting women into common shares

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Question - Koch sold the convertible bonds at a share premium. Interest is paid on 5/31 and 30 for you 1 of each year.  On 5/31, after paying the interest, a sum of 1,000 dinars is offered from these women and converted into 3,000 shares with a nominal value of 10 dinars per share of common stock, whose market price on that date was 40 dinars per share. How should Koch calculate Converting women into common shares according to book value method?  Discuss the rationale for this method.

Reference no: EM132935899

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