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!
Problem - Calculate current yield, conversion ratio, conversion price, and yield to maturity. A 6 percent convertible bond (maturing in 20 years) is convertible into 25 shares of the company's common stock. The bond has a par value of $1,000 and is currently trading at $800; the stock (which pays a dividend of 95 cents a share) is currently trading in the market at $35 a share. Use this information to answer the following questions:
a. What is the current yield on the convertible bond? What is the dividend yield on the company's common stock? Which provides more current income: the convertible bond or the common stock? Explain.
b. What is the bond's conversion ratio? Its conversion price?
c. What is the conversion value of this issue? Is there any conversion premium in this issue? If so, how much?
d. What is the (approximate) yield to maturity on the convertible bond?
create a risk-free hedge portfolio
A& B Electricity Company management has just completed an assessment of the company's assets and liabilities as on 31-12-2016 and has obtained the following.
"Assuming that everything else remains constant, a decrease in the test's level of significance (α) leads to a higher probability of rejecting the null hypothesis." - Is this statement true or false?
How bad is employee motivation and engagement as revealed by the Exhibit?
Suppose the Amazon share price is $2200 on 5/29/2020. What is Joe's profit from this investment?
Because investors often have a negative reaction to a revere stock split, assume the stock only goes up to 80 percent of the value computed in part b. What will the stock's price be? (Do not round intermediate calculations and round your answer to..
Preferred Stock and WACC The Saunders Investment Bank has the following financing outstanding. What is the WACC for the company?
What will be the price of the bond if BCS bond is downgraded to BBB? Show your work below using Excel prompt or your financial calculator.
how much interest will the borrower pay over the life of the mortgage?
Describe one exit strategy that an organization can use when things go wrong in a foreign country? What are some of the issues which might prompt the implementation of an exit strategy?
The nominal yield on 6-month T-bills is 6%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 5%. In the spot exchange market, 1
One suggestion is to use the replacement chain to make the two projects equal in life by repeating Project S at end of the 2nd year. If this method is used
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