Question
You are analyzing a company that has issued convertible bonds to raise capital in the past. These convertible bonds are currently trading for a market
You are analyzing a company that has issued convertible bonds to raise capital in the past. These convertible bonds are currently trading for a market value of $421 million. When the bonds were ordinally issued, they had a face value of $315 million. After performing an analysis, you have found that the value of the "Straight Debt" portion of the convertible bonds is approximately $320 million.
What is the value of the Equity portion of the convertible bonds?
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Financial Reporting and Analysis
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
6th edition
9780077632182, 78025672, 77632184, 978-0078025679
