What is the minimum value of the bond

Assignment Help Biology
Reference no: EM132704790

Hungry Coles Corp. has just issued a 20-year callable, convertible bond with a coupon rate of 6% annual coupon payments. The bond has a conversion price of $80. The firm's stock is selling for $30 per share. The owner of the bond will be forced to convert if the bond's conversion value is ever greater than or equal to $1,100. The required return on an otherwise identical bond is 7%.

a. What is the minimum value of the bond?

b. If the stock price were to grow by 10% per year forever, how long would it take for the bond's conversion value to exceed $1,100?

The capital structure of ABC ltd consists of 30m shares of common stock and 2m warrants. Each warrant gives it owner the right to purchase one share of common stock for an exercise price of $15. The current stock price is $30, and each warrant is worth $10. What is the new stock price if all warrant holders exercise today?

Reference no: EM132704790

Questions Cloud

Conduct a job hazard analysis for the complaint : During a safety inspection, you found a large number of complaints of worker's injuries, specifically to fingers due to a new process involving staplers during.
What is the synergy from the merger : Justice bank is analyzing the possible acquisition of Fair insurance. Neither firm has debt. The forecasts of Justice show that the purchase
Define the function of controlling : Define the function of controlling or monitoring and provide some examples to explain your answer. Define the 'laissez-faire' leadership style.
What are the good features of each demo : Visit the website hr-survey. On this site, there are nine different demos. Please pick three different demos and compare and contrast them using the relevant.
What is the minimum value of the bond : Hungry Coles Corp. has just issued a 20-year callable, convertible bond with a coupon rate of 6% annual coupon payments. The bond has a conversion price of $80.
Outline four qualities or traits of an effective leader : Outline four qualities or traits of an effective leader. Explain the terms 'efficiency' and 'effectiveness'. Discuss the manager's role in promoting healthy
Give the required entries on the partnership books : Give the required entries on the partnership books to record the admission of Corrales under each of the following assumptions
Tracing the origins of the financial crisis : In his article titled "Tracing the origins of the financial crisis", Paul Ramskogler (2014) breaks the causes of the financial crisis into two groups
What are the sample list a voluntary benefits plan : What are the sample list a voluntary benefits plan for the newly hired pharmacist. These benefits should be in accordance with the industry norms.

Reviews

Write a Review

Biology Questions & Answers

  What is difference between endangered and extinct species

What is the difference between endangered, threatened, and extinct species? How would you balance the concerns of these species while focusing on cost first?

  Enzymes to digest the proteins

Cooking with heat partly denatures, or unfolds, proteins in food to make it easier for your enzymes to digest the proteins. Explain why you could use low pH to

  Propose a model of alternative splicing

Propose a model of alternative splicing for this gene that can account for these facts.

  What is the purpose of a 50-g glucose challenge

What is the purpose of a 50-g glucose challenge and how will you educate your patient on this information?

  What are key concepts of an ipm program in crops

a) Name a soil theory. Elaborate on the theory. b) What are key concepts of an IPM program in crops?

  Effects of the bulimia and anorexia

Explain the causes, symptoms, effects of the bulimia and anorexia. Describe the mechanism of their reversible effects.  Determine the net change of the Gibbs free energy for a DNA machine.

  Calculate the frequency of the dominant

Calculate the frequency of the dominant (T) allele for PTC tasting in population A.

  Why bacilli are less varied in arrangement

Describe the types of bacterial cell arrangements and what determines the diversity in these arrangements. Explain why Bacilli are less varied in arrangement

  Scientific method and form a hypothesis

Please give me an example of a scientific method and form a hypothesis based on an everyday observation and cleraly identify the independent variable.

  What is the function of the iris diaphragm

What is the function of the iris diaphragm? What is the function of the field diaphragm?

  Independent and dependent variable

A graph is a visual representation of the relationship between the independent and dependent variable. Graphs are useful in identifying trends

  How many pfu did youput on the plate

Suppose you prepared a phageplate. You diluted your starting phage stock solution to10-3x, and used 100 µl of this diluted phagesolution for making the plate. The plate has 1000 plaques.

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