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Wilcox has CAD 25 million in &-year convertible bonds that pay a semi-annual coupon of 4 53%, and trade at 1.0804. Equivalent straight bonds trade
Wilcox has CAD 25 million in &-year convertible bonds that pay a semi-annual coupon of 4 53%, and trade at 1.0804. Equivalent straight bonds trade at o 3616. The company wants to divide the convertible bond into its debt and equity components to calculate WACC.
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1. What is the debt and equity component (in CAD millions) of the convertible bond?
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