Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Objective type questions on Conversion price of share and bond valuation
1. Reading Railroad\'s common stock is currently priced at $30, and its 8 percent convertible debentures (issued at par, or $1,000) are priced at $850. Each debenture can be converted into 25 shares of common stock at any time before 2005. What is the conversion price, CP, and the conversion value of the bond?
a. $25.00; $1,000
b. $25.00; $ 750
c. $40.00; $ 750
d. $40.00; $ 850
e. $40.00; $1,000
2. B&O Railroad's convertible debentures were issued at their $1,000 par value in 1993. At any time prior to maturity on February 1, 2013, a debenture holder can exchange a bond for 25 shares of common stock. What is the conversion price, Pc?
a. $ 25
b. $1,000
c. $ 40
d. $1,025
e. $ 50
Computation of interest payable and Prepare the issuer's journal entry to record the issuance of the bonds
Computation of present value of cash flows and What is the present value of this cash stream
Calculate the present values of investment using future values investments returns
Relating investment under various capital Budgeting Techniques and whichever project you choose
Objective type Question Bond Yield and Valuation and Identify the choice that best completes the statement or answers the question
Computation of the Preference dividend before declaring the common dividend and What is the minimum amount the firm must pay per share to its preferred stockholders
Computation of NPV of lump sum future receipt and annuity receipts also How much should Mr. & Mrs. Smith deposit now in a bank account paying 9 percent to reach financial happiness during retirement
Computation of yield to maturity when interest is paid and compounded annually and bond's rate of return earned
Justify the term Bond valuation where would sell for a premium if interest rates were below 9 percent and would sell for a discount if interest rates were greater than 11 percent
Computation of value of the stock and which the market had no knowledge of prior to the announcement
Computation of cost of equity, Rate of return and WACC and What is the cost of equity for ABC and What is it for XYZ
Find the underwriters profit on the offer at various offer prices and Casual Corners specializes in the underwriting of small companies
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd