Homework Answers
The value of shares = 20 x 80 = 1600 and the value of bond = 1000
so bond holder will choose to convert them.
All other possibilities are wrong. because to make bond and stock price equivalent, stock price will not go down because stock price is not dependent on bond price. Bond price is also dependent on many factors, so nothing can be said about bond prices
correct answer : bond holder will choose to convert them. [Thumbs up please]
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a. What is the value of the shares the bondholders would receive
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b. What is the value per $1,000 bond they would receive under
the call?
c. If you call the bonds, will the bondholders convert into
shares or accept the call price?
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Please A B and C :) Thanks Will thumbs up Conversion (or stock) value What is...
Please
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a. What is the value of the shares the bondholders would receive
per $1,000 bond if they convert?
b. What is the value per $1,000 bond they would receive under
the call?
c. If you call the bonds, will the bondholders convert into
shares or accept the call price?
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Please
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