Hilton Hotels Corp. has a convertible bond issue outstanding. Each bond, with a face value of $1,200, can be converted into common shares at a rate of 61.2999 shares of stock per $1,200 face value bond (the conversion rate), or $19.5759 per share. Hilton’s common stock is trading (on the NYSE) at $19.16 per share and the bonds are trading at $1,175.
a. Calculate the conversion value of each bond. (Round your answer to 2 decimal places. (e.g., 32.16))
Conversion value $