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Please answer all three questions with 5 white boxes in total or I will down vote, thank you! You own a bond with a face
Please answer all three questions with 5 white boxes in total or I will down vote, thank you!
You own a bond with a face value of $10,000 and a conversion ratio of 475 . What is the conversion price? The conversion price for this bond is $ (Round to the nearest cent.) Your firm successfully issued new debt last year, but the debt carries covenants. Specifically, you can only pay dividends out of earnings made after the debt issue and you must maintain a minimum quick (acid-test) ratio (Current Assets - Inventory)/Current Liabilities of 1.2. Your net income this year was $69.8 million. Your cash is $9.7 million, your receivables are $7.5 million, and your inventory is $4.9 million. You have current liabilities of $18.9 million. What is the maximum dividend you could pay (in cash and in stock) this year and still comply with your covenants? The maximum dividend would be $ million. (Round to one decimal place.) General Electric has just issued a callable (at par) 10-year, 5.8% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $102.09. a. What is the bond's yield to maturity? b. What is its yield to call? c. What is its yield to worst? a. What is the bond's yield to maturity? The bond's yield to maturity is \%. (Round to two decimal places.) b. What is its yield to call? The yield to call is \%. (Round to two decimal places.) c. What is its yield to worst? The yield to worst is \%. (Round to two decimal places.)
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