Find the conversion premium-parity price and share

Assignment Help Financial Management

Reference no: EM132028619

A convertible bond has a conversion ratio of 30 and presently trades at 105 even (the price quote from your brokerage). If the current market price of the underlying common stock is $31.25 per share, use the conversion equivalent (or conversion parity price per share) to find the conversion premium:

Parity price/share: _ _

Conversion premium: _ _%

Reference no: EM132028619

Questions Cloud

How much will you need to invest in stock : You have $20,000 to invest in a stock portfolio. how much ($) will you need to invest in Stock X and Stock Y?

What should one share of this stock be worth in the markets : What should one share of this stock be worth in the markets next year if investors presently expect an 8 percent return on the firm?

How much do you owe in taxes to nearest dollar : With taxes having risen to 50%, how much do you owe in taxes to the nearest dollar?

What required rate of return is implied : You estimate its dividend is expected to grow at an average of 3.5% per year. What required rate of return is implied?

Find the conversion premium-parity price and share : use the conversion equivalent (or conversion parity price per share) to find the conversion premium. Parity price/share. Conversion premium

Specialized plans are successful in medicaid managed care : Which statement is not true regarding why specialized plans are more successful in Medicaid managed care.

What was your required rate of return on medical money-flows : What WAS your required rate of return on MMF before the news came out?

What should be the price of bat company bond : They just paid a coupon yesterday, and their YTM is presently quoted at 14%. What should be the price of a Bat Company Bond?

What is the most you should pay for kramerica : Kramerica enjoys constant dividend growth, and just paid a dividend of $0.22 per share. What is the most you should pay for Kramerica?

User Account

All Pages