Convertible Bonds Rob Stevens is the chief executive officer of Isner Construction, Inc., and owns 950,000 shares
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Convertible Bonds Rob Stevens is the chief executive officer of Isner Construction, Inc., and owns 950,000 shares of stock. The company currently has 6 million shares of stock and convertible bonds with a face value of $40 million outstanding. The convertible bonds have a conversion price of $38, and the stock is currently selling for $45.
a. What percentage of the firm ’ s common stock does Mr. Stevens own?
b. If the company decides to call the convertible bonds and force conversion, what percentage of the firm ’ s common stock will Mr. Stevens own? He does not own any convertible bonds.
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Related Book For
Corporate Finance With Connect Access Card
ISBN: 978-1259672484
10th Edition
Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe
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