Question
DNA Labs Inc. has a $1,000 convertible bond outstanding that can be converted into 20 shares of common stock. The common stock is currently selling
DNA Labs Inc. has a $1,000 convertible bond outstanding that can be converted into 20 shares of common stock. The common stock is currently selling for $33.30 a share, and the convertible bond is selling for $726.40.(Round the final answers to 2 decimal places.)
a.What is the conversion value of the bond?
Conversion value$
b.What is the conversion premium?
Conversion premium$
c.What is the conversion price?
Conversion price$
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
