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Sam, your peer support representative, at Yours Investment Bank (YIB) congratulated you on the knowledge you gained in assessing convertible transactions. He asked you to
- Sam, your peer support representative, at Yours Investment Bank (YIB) congratulated you on the knowledge you gained in assessing convertible transactions. He asked you to assist with the computation for two firms.
- C & M Limited issued a $360 million convertible bond when its stock is trading at $50. The assumption is that is convertible into 6 million shares. What is the conversion premium of the convertible? (3 Marks)
- Joy Plus Limited (JPL) issued convertibles for $400 million with a conversion premium of 25%. The convertible was issued when JPLs stock price was $30. How many shares will be issued by JPL? Provide explanation for your computations. (3 Marks)
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The Evolution Of Finance
Authors: Barbara Guth
1st Edition
1633377261, 978-1633377264
