Question
The 11% convertible debt of Grey plc is convertible in four years time at a rate of 25 shares per bond, or redeemable in four
The 11% convertible debt of Grey plc is convertible in four years’ time at a rate of 25 shares per bond, or redeemable in four years’ time at its par value of £100. The current ordinary share price of Grey plc is £3.50 and this is expected to grow by 5% per year. If Grey plc has a cost of debt of 8%, what is the current ex interest market price of its convertible debt?
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Corporate Finance Principles And Practice
Authors: Denzil Watson, Antony Head
9th Edition
1292450940, 978-1292450940
