Jackson Metals, Inc issued a $1,000 convertible corporate bond Each bond is convertible to 40 shares of the firm 's common stock a What price must the common stock reach before investors would consider converting their bond to common stock b If you owned a bond in Jackson Metals, would you convert ...

a In order for investors to convert this bond to common sto ...

Jackson Metals, Inc. issued a $1,000 convertible corporate bond. Each bond is convertible to 40 shares of

Question:

Jackson Metals, Inc. issued a $1,000 convertible corporate bond. Each bond is convertible to 40 shares of the firm's common stock.
a. What price must the reach before investors would consider converting their bond to common stock?
b. If you owned a bond in Jackson Metals, would you convert your bond to if the stock's price did reach the conversion price? Explain your answer.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...