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Standard Olive Company of California has a $1.000 par value convertible bond outstanding with a coupon rate of 6 percent and a maturity date of

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Standard Olive Company of California has a $1.000 par value convertible bond outstanding with a coupon rate of 6 percent and a maturity date of 5 years. It is rated As, and competitive, nonconvertible bonds of the same risk class carry a 10 percent yield. The conversion ratio is 25 Currently the common stock is selling for $20 per share on the New York Stock Exchange o. What is the conversion price? (Round your answer to 2 decimal places.) Conversion price 5 40.00 ok nice b. What is the conversion value? (Round your answer to 2 decimal places.) Conversion value 500.00 c. Compute the pure bond value (Use semiannual analysis.) Use Appendix B and Appendix Das an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Bond value d. Calculate the crossover point at which the pure bond value equals conversion value. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Share price at crossover point

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