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!
1. Write a case study of a firm that has issued convertible securities (preferred or bond). Discuss why the firm issued the convertible securities. Discuss problems that firm had in issuing the convertible securities. Write about how the investment bankers marketed the security and what type of investors bought into the deal. Write about any special considerations that investment bankers and underwriters had when issuing convertible securities.
2. Review a convertible bond issued. Describe the terms of the issued convertible bond, including when was it issued, years to maturity, whether the bond is convertible, the price that the bond is currently selling at, and the number of shares that bond converts to. Calculate the current conversion value for the bond and whether the conversion option is in or out of the money. Provide the conversion parity price for the stock. Would it make sense for the investor to convert the bond? Provide a recommendation as to whether the investor should buy or sell this convertible bond and why.
Assume semi-annual coupon payments. Calculate the price of this bond if the YTM is 9.47%
You develop the following information. Your firm has a target capital structure of 80% common equity, 5% preferred stock and 15% debt. The firm’s tax rate is 25%. The firm can issue up to $225,000 worth of debt at a before-tax cost of 10%. Then it wi..
Ferd Rumpledink at UBS now observes the data below for the USD and the CHF. He still has 10,000,000 USD or the CHF equivalent (at the current spot rate) to invest for 180 days. Can Ferd make an arbitrage profit on this situation?
Laurel Enterprises expects earnings next year of $3.55 per share and has a 40% retention rate, which is plans to keep constant. Its equity cost of capital is 9%, which is also its expected return on new investment. Its earnings are expected to grow f..
Your client is 20 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $2,000 per year; and you advise her to invest it in the stock market, which you expect to provide an average ret..
The current ratio of a firm would be increased by which of the following?
A bond with a face value of $18,000 and a 2.7?% interest rate? (compounded semiannually?) will mature in 9 years. What is a fair price to pay for the bond ?today? A fair price to buy the bond at would be $____
Boehm Incorporated is expected to pay a $1.30 per share dividend at the end of this year (i.e., D1 = $1.30). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 15%. What is the value per..
Blair & Rosen, Inc. (B&R), is a brokerage firm that specializes in investment portfolios designed to meet the specific risk tolerances of it clients. A client who contacted B&R this past week has a maximum of $50,000 to invest. Formulate this program..
Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin paying dividends, beginning with a dividend of $1.75 coming 3 years from toda..
Gregg Company recently issued two types of bonds. The first issue consisted of 20-year straight (no warrants attached) bonds with an 5% annual coupon. The second issue consisted of 20-year bonds with a 2% annual coupon with warrants attached. Both bo..
Metroplex Corporation will pay a $5.10 per share dividend next year. The company pledges to increase its dividend by 4.00 percent per year indefinitely. If you require a 9.00 percent return on your investment, how much will you pay for the company's ..
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