You are the CFO of RealNetworks on July 1, 2008. The companys stock price is $6.74 and
Question:
You are the CFO of RealNetworks on July 1, 2008. The company’s stock price is $6.74 and its convertible debt (as shown in Table 15.7) is now callable.
a. What is the value of the shares the bondholders would receive per $1000 bond if they convert?
b. What is the value per $1000 bond they would receive under the call?
c. If you call the bonds, will the bondholders convert into shares or accept the call price?
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Step by Step Answer:
Plan According to Table 157 if converted each bond is worth 107565 shares of Real Netw...View the full answer
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