Question
Reading Railroads common stock is currently priced at $30 and its 8% convertible debentures (issued at par or $1,000) are priced at $850. Each debenture
Reading Railroads common stock is currently priced at $30 and its 8% convertible debentures (issued at par or $1,000) are priced at $850. Each debenture can be converted into 25 shares of common stock at any time before 2005. What is the conversion price, CP and the conversion value of the bond?
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Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay, Robert J. Hughes, Melissa Hart
12th edition
1259720683, 978-1259720680
