"CONVERTIBLE BONDS OF COUNTRYWIDE FINANCIAL CORPORATION CASE STUDY, BY RAVI JAGANNATHAN", KEL323

Questions:

1.What could be the reasons behind the exchange offer?

2. Why should the market care about the method of EPS computation?

3. How are the conversion proceeds determined in the case of the new convertible

security? Is this a common practice?

4. Would you accept the exchange offer?

5. Will the call and put features affect the pricing of the new convertible security?

6. What will be the conversion proceeds in $ terms on October 20th, 2004?

7. What is the reason behind the sudden increase in the convertible bond trading on

October 20th, 2004?

8. What is the cost to the investors and the company?