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You own a bond with a face value of $1,000. It matures today and could be converted into 24 shares. The stock price is currently
You own a bond with a face value of $1,000. It matures today and could be converted into 24 shares. The stock price is currently $51.48. - Attempt 1/3 for 10 pts. Part 1 What is the conversion price? 1+ decimals Submit Part 2 Attempt 1/3 for 10 pts. What is the value of the shares you would receive if you converted now? Big Corp. is in the process of buying Little Corp. Assume there are no synergies. Stock price Shares outstanding Earnings Earnings per share PE ratio Market value of equity Big Corp. Little Corp. 51.6 20.64 500 200 860 344 1.72 1.72 30 12 25,800 4,128 Little Corp. shareholders will receive one share of Big Corp. for every 2.5 shares they hold in Little Corp. Part 1 1 Attempt 1/3 for 10 pts. How many shares will Big Corp. have outstanding after the merger? 0+ decimals Submit - Attempt 1/3 for 10 pts. Part 2 What is the EPS of the merged company
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