Question
What is the bond's conversion ratio if the following is true: Years to maturity: 10 Stock price: $30.00 Par value: $1,000.00 Conversion price: $35.00 Annual
What is the bond's conversion ratio if the following is true:
Years to maturity: 10
Stock price: $30.00
Par value: $1,000.00
Conversion price: $35.00
Annual coupon: 5.00%
Straight-debt yield: 8.00%
Please show work, options are:
| 30.00 |
| 31.50 |
| 33.08 |
| 28.57 |
| 27.14 |
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrod Harford, David Stangeland, Andras Marosi
3rd Canadian Edition
0135418178, 978-0135418178
