What is the? bond conversion? price

Assignment Help Finance Basics
Reference no: EM132724577

A certain 6?% annual coupon rate convertible bond? (maturing in 20? years) is convertible at the? holder's option into 20 shares of common stock. The bond is currently trading at ?$800. The stock? (which pays 65?¢ a share in annual? dividends) is currently priced in the market at ?$31.28 a share.

a. What is the? bond's conversion? price?

b. What is its conversion? ratio?

c. What is the conversion value of this? issue? What is its conversion? parity?

d. What is the conversion? premium, in dollars and as a? percentage?

e. What is the? bond's payback? period?

f. If comparably? rated, nonconvertible bonds sell to yield 8%, what is the investment value of the? convertible?

Reference no: EM132724577

Questions Cloud

Calculate the weighted average cost of capital : a. Calculate the weighted average cost of capital using book value weights.
Describe the potential impact on the financial statement : Discuss audit procedures that may verify the potential impact on the 2020 financial statements. Explain the potential impact on the 2020 financial statements.
What are the industry averages for ratios : Fast food industry. Find common ratios significant to this industry. What are they and what are they telling you about this industry?
The changes coming to healthcare : What is e-health? What new skills will you need for the changes coming to healthcare?
What is the? bond conversion? price : A certain 6?% annual coupon rate convertible bond? (maturing in 20? years) is convertible at the? holder's option into 20 shares of common stock.
What do want to ask about bph risk assessment controls : Who are covered by government-sponsored Medicare or Medicaid programs. What questions do you want to ask about BPH's risk assessment controls?
Health information about their bodies : Health literacy is the degree to which people possess the ability to comprehend and make use of health information about their bodies, conditions,
What is the payback period on the film project : A movie studio invested $59 million to produce a film. This budget was exhausted in the first year, before the film was completed. It cost an additional
Discuss the tax treatment of Alan travel : Advise Alan of the tax consequences arising from the above fact situation by answering question - Discuss the tax treatment of Alan travel

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the npv of installing machinery

Machine cost $80,000. Depreciation is calculated using straight line over 4 years.

  What is roa-here and gone inc

Here and Gone, Inc., has sales of $23,938,788, total assets of $9,708,551, and total debt of $3,126,827. If the profit margin is 5 percent, what is ROA?

  What type of visa would a foreign worker performing

What type of visa would a foreign worker performing agricultural labor of a seasonal nature have to obtain to be able to legally work in the United States?

  Review case-common versus preferred stock

Common versus Preferred Stock. Suppose a company has a preferred stock issue and a common stock issue. Both have just paid a $2 dividend.

  What is the present value of annuity due

What is the present value of annuity due that pays you 7,000 per month for twenty years. Assume the appropriate discount is 4%

  What will be their optimal cash return point

Hollywood Shoes would like to maintain their cash account at a minimum level of $66,000, but expect the standard deviation in net daily cash flows

  How many shares of common stock had been authorized

What is NIKE's accumulated balance of comprehensive income as of May 31, 2009? What does the balance primarily consist of, and what was the comprehensive income amount for the year? Was it greater than or less than net income?

  What will be the amount that will be left over

Baako has invested $55,000 in a trust fund at 8% for his child's college education. His child will draw $15,000 per year for four years, starting at the end of

  What is the additional increase in sales revenue required

An operation operates with a variable cost percentage of 72%. The owner wants to increase sales revenue by an amount necessary to provide for an additional.

  What should the yearly savings be to achieve objectives

Mr. Smith retires in exactly 20 years. At that time he desires to have accumulated enough money so that he can consume $100,000 per year for perpetuity.

  Invest in the callable bond or convertible bond

If you believe the stock of the company, which the bond can be converted rises two-fold or equally go out of existence by next year

  Active portion of the optimal risky portfolio

What is the beta of the active portion of the optimal risky portfolio?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd