He wants to raise money for creating new game

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Reference no: EM132046893

You recently met the CFO of a Video Arcade company, called Uncertainty Corporation. He wants to raise money, for creating a new game. He has decided, to issue, a type of bond that the holder, can convert into a specified number of shares, of common stock, 3 issued by their company. In essence, they have created a hybrid security, with debt and equity-like features. How will you determine, the price at which, you will buy this hybrid security today? Please clearly state your assumptions, terminology and notation.

Reference no: EM132046893

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