6. You are valuing an industrial firm whose enterprise value is $10.0 billion. The company has no...

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6. You are valuing an industrial firm whose enterprise value is $10.0 billion.

The company has no straight debt but does have 100,000 convertible bonds outstanding. The market value of each bond is $1,150. If the company has 500 million shares outstanding, what is the company’s equity value and value per share using

(a) the market value approach and

(b) the conversion value approach?

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Valuation Measuring And Managing The Value Of Companies University Edition

ISBN: 978-1118873731

6th Edition

Authors: Mckinsey & Company Inc. ,Tim Koller ,Marc Goedhart ,David Wessels

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