User Account

All Pages

What is the conversion value of the bond

Assignment Help Financial Accounting
Reference no: EM133114030

Question - Plunkett Gym Equipment Inc. has a $1,000 par value convertible bond outstanding that can be converted into 20 shares of common stock. The common stock is currently selling for $33.30 a share, and the convertible bond is selling for $726.40.

Required -

a. What is the conversion value of the bond?

b. What is the conversion premium?

c. What is the conversion price?

Reference no: EM133114030

Questions Cloud

Milken capital access index : Milken Capital Access Index. The Milken Institute's Capital Access Index (CAI) is one of the most recent informational indices that aids in the evaluation of ho
Complement contribute to the elimination of a pathogen : Discuss the mechanisms by which antibody and complement contribute to the elimination of a pathogen from the blood stream
Briefly explain the revenue recognition frame work : Briefly explain the revenue recognition frame work as per IFRS 15, revenue from contract with customers and clearly indicate how the above violate the framework
What will be the withdrawal amount at the end of the year : If the nominal interest rate is 5% compounded monthly, what will be the withdrawal amount at the end of the 16th year
What is the conversion value of the bond : The common stock is currently selling for $33.30 a share, and the convertible bond is selling for $726.40. What is the conversion value of the bond
Find the asset turnover ratio and return on total assets : For 2016: net sales at $900,000, net income = $3,65,000 and total assets at $650,000. Find the asset turnover ratio and return on total assets
How much is left for you after all taxes are paid : You are a shareholder in a corporation that owns real estate assets. The corporation earns $2 per share before taxes. Once it has paid taxes, it will distribute
Calculate yield to maturity : Calculate yield to maturity (YTM). Calculate the price 4 years from now, assuming the yield to maturity remains constant.
Why is underpricing not a great concern with bond offerings : 1. If you were an athlete negotiating a contract, would you want a big signing bonus payable immediately and smaller payments in the future, or vice versa?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Separate accounting standard

We have a separate accounting standard, AASB 138, that specifically deals with intangible assets and it provides different requirements from those for property, plant and equipment (the rules for which appear in AASB 116). what is it about intangible..

  What is the present value of your windfall

You have just received notification that you have won the $3.0 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 77 years from now. What is the present value ..

  Estimate bad debts expense using the allowance method

You had to estimate bad debts expense using the allowance method for the year end accounts. Provide an explanation for the accounting treatment of GST.

  Preparation of annual adjusting entries

A review of the ledger of Sandhill Co. at December 31, 2022, produces these data pertaining to the preparation of annual adjusting entries.

  Determine the company rate of return after the takeover

Ariella agrees to sell the firm to Charlie for $15 million. Determine the company rate of return after the takeover

  What name of the item that automatically added to item list

Compute What is the name of the item that is automatically added to the Item List when Finance Charge preferences have been set up?

  What proceeds did Sparkle production received

Sparkle production accepted a $25,000, 8%, 120 day note on July 8. The note was discounted on Sept 4 by 7%. What proceeds did Sparkle production received

  How much should be in firm interest payable account

Martin & Associates borrowed $5,000 on April 1, 2010 at 8% interest with both principal and interest due on March 31, 2011 How much should be in the firm's interest payable account at December 31, 2010?

  Compute how many units of printer must be sold to break even

Explain what is margin of safety. Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000 units?

  What is the maximum mortgage they are able to obtain

The houses they are looking at have property taxes of $17,500 annually. What is the maximum mortgage they are able to obtain

  What is the amount of total assets after all transactions

Carter Wilson is a painting contractor, What is the amount of total assets after all transactions have been recorded on an accounting equation sheet?

  Calculate the interest payment on the bond

Calculate the interest payment on the bond. Big Cat's issues $100,000 of a 4-year 10% bond on January 1, 2015 when the market rate is 8%.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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