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Assume the firm that you are analyzing has convertible debt with the following characteristics: Face value: $200 million Stated interest rate: 6%, interests are paid

Assume the firm that you are analyzing has convertible debt with the following characteristics: Face value: $200 million Stated interest rate: 6%, interests are paid on annual basis Time to maturity: 10 years Market value: $250 million Cost of debt: 8% Estimate the equity portion of this convertible debt.

A. $76.84 million.

B. $126.44 million.

C. $173.16 million

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