Calculation of the stock price, Business Management

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Calculation of the stock price

A convertible bond has a coupon rate of 5.25%, a maturity of June 17, 2017, and a market price of $775.00. The underlying price of the common stock is $28.00, the annual dividend is $1.20 and the conversion ratio is 20.83 shares. Calculate the conversion premium for this bond. Calculate the stock price above which conversion will make sense, assuming the bond price remains unchanged. Calculate the stock price that will result in a conversion value equal to the bond's par value.

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Business Management: Calculation of the stock price

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Business Management: Calculation of the stock price

Reference No:- TGS0101314

Have a Question? (oR Write a Review)

Recent Questions Asked Business Management

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Request for Solution File

Ask an Expert for Answer!!

Business Management: Calculation of the stock price

Reference No:- TGS0101314

Recent Questions Asked Business Management

Q : What is the interest rate

Q : Strategic development process involves mobilizing employees

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Q : What the amount that should be reported by lang corporation

Q : Calculation of the stock price

Q : What technologies you believe provide the biggest challenge

Q : Excise tax on restaurant meals

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