=1/Company X has capital of 2 million shares that are currently trading at 2000 per share. On

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=1/Company X has capital of 2 million shares that are currently trading at €2000 per share.

On its balance sheet it has a liability for an issue of convertible bonds with the following characteristics:

◦ nominal value: €500m (500 000 convertible bonds of face value €1000 each);

◦ interest rate: 5%;

◦ conversion ratio: 1 for 1;

Company X expects to have a net profit of €300m next year.

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Corporate Finance Theory And Practice

ISBN: 9781118849330

4th Edition

Authors: Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi

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Question Posted: Jul 31, 2024 03:00 AM

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=1/Company X has capital of 2 million shares that are currently trading at 2000 per share. On

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Corporate Finance Theory And Practice

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