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In June 2010, Microsoft Corporation had a convertible bond issue outstanding. Each bond, with a face value of $1,000, could be converted into common shares
In June 2010, Microsoft Corporation had a convertible bond issue outstanding. Each bond, with a face value of $1,000, could be converted into common shares at a rate of 29.9434 shares of stock per $1,000 face value bond (the conversion rate), or $33.40 per share. In June 2010, Microsofts common stock was trading (on the NASDAQ) at $25.11 per share Calculate The conversion value of the bonds
In June 2010, Microsoft Corporation had a convertible bond issue outstanding. Each bond,
with a face value of $1,000, could be converted into common shares at a rate of 29.9434
shares of stock per $1,000 face value bond (the conversion rate), or $33.40 per share. In
June 2010, Microsofts common stock was trading (on the NASDAQ) at $25.11 per share
Calculate
The conversion value of the bonds
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
12th edition
1305041399, 1285078586, 978-1-133-9524, 9781133952428, 978-1305041394, 9781285078588, 1-133-95241-0, 978-1133952411
