Question
Sherwood Forest Products has a convertible bond quoted on the NYSE bond market at 90. (Bond quotes represent the percentage of par value. Thus, 70
Sherwood Forest Products has a convertible bond quoted on the NYSE bond market at 90. (Bond quotes represent the percentage of par value. Thus, 70 represents $700, 80 represents $800, and so on.) It matures in 10 years and carries a coupon rate of 5.50 percent. The conversion ratio is 25, and the common stock is currently selling for $33 per share on the NYSE.
Compute the conversion premium.
Note: Do not round intermediate calculations and round your answer to 2 decimal places.
At what price does the common stock need to sell for the conversion value to be equal to the current bond price?
Note: Do not round intermediate calculations and round your answer to 2 decimal places.
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Amazon Fba E Commerce Business Model In 2020 $10 000
Authors: Roberts Ronald
1st Edition
1951595777, 978-1951595777
