subject
Business, 11.12.2019 19:31 mikey952

Campbell, inc., has a $1,000 face value convertible bond issue that is currently selling in the market for $990. each bond is exchangeable at any time for 39 shares of the company’s stock. the convertible bond has a 5.4 percent coupon, payable semiannually. similar nonconvertible bonds are priced to yield 8 percent. the bond matures in 20 years. stock in the company sells for $22 per share. a-1. what is the conversion ratio? a-2. what is the conversion price? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) a-3. what is the conversion premium? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) b-1. what is the straight bond value? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) b-2. what is the conversion value? (do not round intermediate calculations and round your answer to the nearest whole dollar, e. g., 32.) c. what would the stock price have to be for the conversion value and the straight bond value to be equal? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) d. what is the option value of the bond? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 01:00, lin550
Throne technical university is looking for three people to work in its plant-biology laboratory. the hiring manager is finding that the most suitable job candidates live in other countries and are not willing to move to the city where the university is located. which situation is the university facing? a. lack of flexible workforce b. surpluses in labor talent c. an appearance of quota systems d. deficits in minimum wage demands
Answers: 1
image
Business, 22.06.2019 19:30, Lucid4465
Which of the following constitute the types of unemployment occurring at the natural rate of unemployment? a. frictional and cyclical unemployment. b. structural and frictional unemployment. c. cyclical and structural unemployment. d. frictional, structural, and cyclical unemployment.
Answers: 2
image
Business, 23.06.2019 12:00, kaylallangari1509
What could increase the value of your property
Answers: 1
image
Business, 24.06.2019 02:00, meramera50
Amanda was asked by her boss to create a handbook for new hires because several employees had recently complained, saying they felt lost when they first started because procedures didn't seem to be formalized. amanda herself had not felt that way, perhaps because she has a
Answers: 3
You know the right answer?
Campbell, inc., has a $1,000 face value convertible bond issue that is currently selling in the mark...

Questions in other subjects:

Konu
History, 30.11.2021 20:50
Konu
Mathematics, 30.11.2021 20:50
Konu
Mathematics, 30.11.2021 20:50