Explain conversion value approach

Reference no: EM131445385

Question: You are valuing an industrial firm whose enterprise value is $10.0 billion. The company has no straight debt but does have 100,000 convertible bond outstanding. The market value of each bond is $1,150. If the company has 500 million shares outstanding, what is company equity value and value per share using

(a) market value approach and the

(b) conversion value approach?

Reference no: EM131445385

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