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KRJ International's balance sheet shows (in $ thousands) outstanding convertible debt (with annual coupon payments) with a book value of $230 and a current market
KRJ International's balance sheet shows (in $ thousands) outstanding convertible debt (with annual coupon payments) with a book value of $230 and a current market value of $260. The bonds have 8 years to maturity and a coupon rate of 2% with interest paid annually. The yield to maturity on comparable nonconvertible debt is 7%. How much (in $ thousands) of the value of the convertible debt should be considered as part of equity when the company calculates its WACC? Please round your answer to one decimal place, e.g., 234.5.
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