The difference between the conversion price and the current stock price, divided by the current stock...
The difference between the conversion price and the current stock price, divided by the current stock price, is called the:
Multiple Choice
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straight bond value.
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conversion value.
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conversion ratio.
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conversion price.
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conversion premium.
Homework Answers
The answer is
Conversion Premium
The difference between the conversion price and the current stock price, divided by the current stock price, is called Conversion Premium
Straight Bond value if value of bond without conversion option
Conversion ratio is number of shares to be issued for each bond
Conversion price is the price at which conversion is to be done
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ONLY ANSWER E,F,G 2. Consider the convertible bond by Miser Electronics: par value1, 000 market price...
ONLY ANSWER E,F,G
2. Consider the convertible bond by Miser Electronics: par value1, 000 market price of convertible bond- $900 estimated straight value of bond $700 . coupon rate-8.5% . conversion ratio30 Assume that the price of Miser Electronics common stock is $25 and that the dividend per share is $1 per annum Calculate each of the following a. conversion valie b. market conversion price C. conversion premium per share d. conversion premium ratio e. premium over straight value f....
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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....
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Conversion price Calculate the conversion price for each of the following convertible bonds: a. A $1,000-par-value...
Conversion price Calculate the conversion price for each of the following convertible bonds: a. A $1,000-par-value bond that is convertible into 40 shares of common stock. b. A$1000-par-value bond that is convertible into 25 shares of common stock. c. A $1,000-par-value bond that is convertible into 125 shares of common stock. a. The conversion price is $ per share. (Round to the nearest cent.)
Please A B and C :) Thanks, Will thumbs up Conversion price Calculate the conversion price...
Please A B and C :) Thanks, Will thumbs up
Conversion price Calculate the conversion price for each of the following convertible bonds: a. A$1,000-par-value bond that is convertible into 40 shares of common stock. b. A$1000-par-value bond that is convertible into 25 shares of common stock c. A$1,000-par-value bond that is convertible into 125 shares of common stock. a. The conversion price is Sper share. (Round to the nearest cent.)
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Conversion price Calculate the conversion price for the following convertible bond: A $700-par-value bond that is...
Conversion price Calculate the conversion price for the following convertible bond: A $700-par-value bond that is convertible into 25 shares of common stock. The conversion price is $_______ per share. (Round to the nearest cent.)
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ONLY ANSWER E,F,G
2. Consider the convertible bond by Miser Electronics: par value1, 000 market price of convertible bond- $900 estimated straight value of bond $700 . coupon rate-8.5% . conversion ratio30 Assume that the price of Miser Electronics common stock is $25 and that the dividend per share is $1 per annum Calculate each of the following a. conversion valie b. market conversion price C. conversion premium per share d. conversion premium ratio e. premium over straight value f....
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....
Conversion price Calculate the conversion price for each of the following convertible bonds: a. A $1,000-par-value bond that is convertible into 40 shares of common stock. b. A$1000-par-value bond that is convertible into 25 shares of common stock. c. A $1,000-par-value bond that is convertible into 125 shares of common stock. a. The conversion price is $ per share. (Round to the nearest cent.)
Please A B and C :) Thanks, Will thumbs up
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Conversion price Calculate the conversion price for the following convertible bond: A $700-par-value bond that is convertible into 25 shares of common stock. The conversion price is $_______ per share. (Round to the nearest cent.)
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