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You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.45 and its convertible debt is now callable. See the
You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.45 and its convertible debt is now callable. See the table below: Convertible Subordinated Notes Issued under U.S. SEC Rule 144A Aggregate principal amount Proceeds net of offering costs $100 million $97.0 million Coupon 0% 107.1507 shares per $1,000 principal amount July 1, 2008 Conversion ratio Call date Call price 100% Maturity July 1, 2010 a. What is the value of the shares the bondholders would receive per $1,000 bond if they convert? The value the bondholders would receive is $ (Round to the nearest cent.)
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