8. Assuming the firm that you are analyzing has $125 million in face value of convertible debt with a stated interest rate of 5%, interests are paid annually, a 5-year maturity and a market value of $140 million. If the firm has a bond rating of B and the interest rate on B-rated straight bond is 10%. Estimate the equity portion of the convertible debt. A. $28.67 million B. $33.37 million C. $38.69 million 9. You have decided to re-classify operating leases as financing expense for your company, which of the following would you NOT expect to happen? A. Depreciation will increase B. Book value of asset will increase C. Book value of equity will increase 10. Which of the following(s) will likely be added to the value of non-cash operating assets in your valuation? A. Value of vacant land B. Value of headquarter C. Value of factory