A convertible preferred shares is priced at R100, with a conversion ratio of five. If the...
A convertible preferred shares is priced at R100, with a conversion ratio of five. If the common shares move to R25 per share, what would the preferred shareholder’s return be if they converted now?
Homework Answers
Answer:
Convertible Preferred Share : R 100
Common Share : R 25
Conversion Ratio is 5, that means 5 Common Shares for 1 Preferred Share
Value of Common Shares after Conversion : R25*5= R125
Return of Preferred Shareholder if converted : R125-R100= R 25
% Return : 25*100/100= 25%
Add Answer to:
A convertible preferred shares is priced at R100, with a
conversion ratio of five. If the...
Find the conversion value of a convertible preferred stock that carries a conversion ratio of 1.8,...
Find the conversion value of a convertible preferred stock that carries a conversion ratio of 1.8, given that the market price of the underlying common stock is $32.86 a share. Would there be any conversion premium if the convertible preferred were selling at $73.82 a share? If so, how much in dollar and percentage terms)? Also, explain the concept of conversion parity, and then find the conversion party of this issue given that the preferred trades at 573.82 per share....
ABC Corporation issued 1000 shares of $100 convertible preferred stock at $30000 premium. Each share of...
ABC Corporation issued 1000 shares of $100 convertible preferred stock at $30000 premium. Each share of preferred stock could be converted to 100 shares of $1 par common stock. Prepare the following journal entries: A. Sales of the convertible preferred stock B. Conversion of all the preferred stock to common stock C. How would journal entry B. change if the par value of the preferred stock plus the premium in the additional paid-in capital associated with the preferred stock had...
In 2017, Swifty Corporation, issued for $103 per share, 92500 shares of $100 par value convertible...
In 2017, Swifty Corporation, issued for $103 per share, 92500
shares of $100 par value convertible preferred stock. One share of
preferred stock can be converted into three shares of Swifty's $20
par value common stock at the option of the preferred stockholder.
In August 2018, all of the preferred stock was converted into
common stock. The market value of the common stock at the date of
the conversion was $25 per share. What total amount should be
credited to...
In 2017, Sheffield Corp., issued for $102 per share, 97000 shares of $100 par value convertible...
In 2017, Sheffield Corp., issued for $102 per share, 97000
shares of $100 par value convertible preferred stock. One share of
preferred stock can be converted into three shares of Sheffield's
$20 par value common stock at the option of the preferred
stockholder. In August 2018, all of the preferred stock was
converted into common stock. The market value of the common stock
at the date of the conversion was $25 per share. What total amount
should be credited to...
Convertible Preferred Stock, Convertible Bonds, and EPS Francis Company has 12,000 shares of common stock outstanding...
Convertible Preferred Stock, Convertible Bonds, and EPS Francis Company has 12,000 shares of common stock outstanding at the beginning of 2016. Francis issued 1,500 additional shares on May 1 and 1,000 additional shares on September 30. It also has two convertible securities outstanding at the end of 2016. These are: Convertible preferred stock: 1,250 shares of 9.0%, $50 par, preferred stock were issued on January 2, 2013, for $60 per share. Each share of preferred stock is convertible into 3...
You bought a convertible bond issued by HiTech Corp which has a conversion ratio of 50...
You bought a convertible bond issued by HiTech Corp which has a conversion ratio of 50 common shares for each $1,000 bond. At what stock price per share would you make a profit (“in the money”) if you bought the bond at par? What would you expect the bond to sell for in the market if the stock trades at $28 per share?
You bought a convertible bond issued by HiTech Corp which has a conversion ratio of 50...
You bought a convertible bond issued by HiTech Corp which has a conversion ratio of 50 common shares for each $1,000 bond. a. At what stock price per share would you make a profit (“in the money”) if you bought the bond at par? b. What would you expect the bond to sell for in the market if the stock trades at $28 per share?
Convertible Securities and Earnings per Share Percy Company has 15,000 shares of common stock outstanding during...
Convertible Securities and Earnings per Share Percy Company has 15,000 shares of common stock outstanding during all of 2016. It also has 2 convertible securities outstanding at the end of 2016. These are: 1. Convertible preferred stock: 1,000 shares of 9%, $100 par, preferred stock were issued in 2015 for $140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted....
Villanueva Corp. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000...
Villanueva Corp. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 5% convertible bonds outstanding during 2020. The preferred stock is convertible into 40,000 shares of common stock. During 2020, Villanueva paid dividends of $1.20 per share on the common stock and $4 per share on the preferred stock. The bonds were originally issued at par and each $1,000 bond is convertible into 45 shares of common stock. Villanueva’s net income for 2020 was...
1-Suppose a firm issues a 1,000 Convertible Preference Shares for with a par value of $100...
1-Suppose a firm issues a 1,000 Convertible Preference Shares for with a par value of $100 each. Each preference share is convertible into 5 Ordinary Shares with a par value of $5. The credit entry to “Share Premium – Conversion Equity” on the date of issue was for $200,000. Assume that the maturity date of the Convertible Shares has now arrived and the Convertible Preference Shares will be converted into Ordinary Shares. The Debit Entry to the “Share Premium –...
Find the conversion value of a convertible preferred stock that carries a conversion ratio of 1.8, given that the market price of the underlying common stock is $32.86 a share. Would there be any conversion premium if the convertible preferred were selling at $73.82 a share? If so, how much in dollar and percentage terms)? Also, explain the concept of conversion parity, and then find the conversion party of this issue given that the preferred trades at 573.82 per share....
In 2017, Swifty Corporation, issued for $103 per share, 92500
shares of $100 par value convertible preferred stock. One share of
preferred stock can be converted into three shares of Swifty's $20
par value common stock at the option of the preferred stockholder.
In August 2018, all of the preferred stock was converted into
common stock. The market value of the common stock at the date of
the conversion was $25 per share. What total amount should be
credited to...
In 2017, Sheffield Corp., issued for $102 per share, 97000
shares of $100 par value convertible preferred stock. One share of
preferred stock can be converted into three shares of Sheffield's
$20 par value common stock at the option of the preferred
stockholder. In August 2018, all of the preferred stock was
converted into common stock. The market value of the common stock
at the date of the conversion was $25 per share. What total amount
should be credited to...
Convertible Securities and Earnings per Share Percy Company has 15,000 shares of common stock outstanding during all of 2016. It also has 2 convertible securities outstanding at the end of 2016. These are: 1. Convertible preferred stock: 1,000 shares of 9%, $100 par, preferred stock were issued in 2015 for $140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted....
Most questions answered within 3 hours.
-
List and describe in detail all of the activities included in a
market-sensing process. What impacts...
asked 43 seconds from now -
a. How many moles are there in 36 grams of carbon?
b. How many grams are...
asked 12 seconds ago -
Suppose a college determines the average commute time of a random
sample of 40 students to...
asked 16 minutes ago -
What is a whistleblower?
(Select the best choice below.)
A.
The act of restating earnings.
B....
asked 10 minutes ago -
Predict the product(s) using a balanced equation and state
whether the following is a redox reaction:...
asked 14 minutes ago -
2. A positive point charge +Q resides at the center of a
conducting spherical shell of...
asked 16 minutes ago -
the frequency of a rare, autosomal recessive metabolic disease
in the U.S. population is 1 in...
asked 15 minutes ago -
When the sum of square residual is 0, R2 is
Need more information to answer this...
asked 40 minutes ago -
During the last year of operations, Theta’s accounts receivable
increased by $17,000, accounts payable increased by...
asked 34 minutes ago -
The domestic dog has 39 pairs of homologous chromosomes. A dog's
somatic cells have ________ chromosomes...
asked 37 minutes ago -
. For a diverging lens, construct a derivation of Newton’s lens
equation: xo xi = f^2...
asked 37 minutes ago -
All academic manuscripts (journal articles, communications,
etc.) have an introduction as a way to introduce the...
asked 41 minutes ago