A $1000 face value bond has a conversion ratio of 48. You estimate the transaction costs of
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A $1000 face value bond has a conversion ratio of 48. You estimate the transaction costs of conversion to be 2.7% of the face value of the bond. What price must the stock reach in order for you to convert?
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To calculate the price at which it becomes advantageous for you to convert the bond into stock you n...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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