Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please calculate : conversion price,conversion ratio,conversion value and conversion premium ( in percentage ) . thank you a) Franky's board of management agreed to issue

image text in transcribed

please calculate : conversion price,conversion ratio,conversion value and conversion premium ( in percentage ) .

thank you

a) Franky's board of management agreed to issue RM20 million in convertible bonds needed to complete the Regional Shipping Center project. Each of the bonds carries RM1,000 of par value, 10-percent annual interest payment and a maturity period of 20 years. The management believes that the company can boost its operating profit by 20-percent after financing with convertible bonds. The conversion price is set at a 10-percent premium of the market price. Some important financial data for Franky Corporation are given below. Operating profit margin Earnings per share Price/Earnings ratio Net Income Sales Tax rate 40% RM1.60 12.50 times RM16 million RM50 million 20% Using all the relevant information, calculate the

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Enhancing Financial Inclusion Through Islamic Finance Volume II

Authors: Abdelrahman Elzahi Saaid Ali , Khalifa Mohamed Ali , Mohamed Hassan Azrag

1st Edition

3030399389,3030399397

More Books

Students also viewed these Finance questions

Question

Write a note on AGMARK.

Answered: 1 week ago

Question

Plan merit and demerits ?

Answered: 1 week ago

Question

Essential Elements of map ?

Answered: 1 week ago

Question

Evaluate common feachers of social reform movement in Kerala?

Answered: 1 week ago