Question
Calculate the conversion price formula (CPF) and market price formula (MPF) prices for an offering involving an existing conversion with a price of $1, a
Calculate the conversion price formula (CPF) and market price formula (MPF) prices for an offering involving an existing conversion with a price of $1, a hypothesized market price of $2, and a new offering price of $0.95 for 1,000 shares with 2,000 shares outstanding before the new issue. Relate the new conversion price to the implied new conversion ratio.
What is the:
a) CPF?
b) MPF?
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Fundamentals Of Corporate Finance
Authors: Stephen A Ross, Randolph W Westerfield, Bradford D Jordan
7th Edition
0073134295, 9780073134291
