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Fin Corp issued in 1.2 billion of a 5% Convertible Bond maturing in 2029. Each bond had a face value of $1,000 and was convertible
Fin Corp issued in 1.2 billion of a 5% Convertible Bond maturing in 2029. Each bond had a face value of $1,000 and was convertible into 6 shares of the firm's stock. You estimate the transaction costs of conversion to be 1% of the face value of the bond. What is the minimum price that the stock has to reach in order for the investors to convert? Select one: a. $166.67 a share b. $168.33 a share c. $157.00 a share d. None of the answers is correct
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