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need detail calculation QUESTION 1 In line with the company's expansion, Hani Corp. has decided to raise some fund through issuing 350,000 units of convertible

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QUESTION 1 In line with the company's expansion, Hani Corp. has decided to raise some fund through issuing 350,000 units of convertible bonds. The 8 percent, RM1,000 bond will mature in 25 years. Conversion price is at 20 percent discount below the trading price and the company's common share are now trading at RM25 per share. The management realized that the company can boost its operating profit by RM10 million to RM40 million after financing with convertible bonds. At present the company has 30 million common shares outstanding and the corporate tax rate is 30 percent. Calculate the: a) Conversion price. (2 marks) b) Conversion ratio. (2 marks) c) Conversion value. (2 marks) d) Number of new shares if 100 percent conversion. (2 marks) e) Number of new shares if 60 percent conversion. (2 marks) 1) Earnings per share before conversion. (5 marks) g) Earnings per share after 60 percent conversion

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