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Determining the conversion value of the bond

Orient Airlines' common stock currently sells for $33, and its eight percent convertible debentures (issued at par, or $1,000) sell for $850. Each debenture can be converted into 25 shares of common stock at any time before 2019. What is the conversion value of the bond?

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Finance Basics: Determining the conversion value of the bond

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the conversion value of the bond

Reference No:- TGS0670198

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Determining the current price of the stock

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the conversion value of the bond

Reference No:- TGS0670198

Recent Questions Asked Finance Basics

Q : Determining the current price of the stock

Q : Today value of the stock

Q : Compute the cost of equity

Q : Describes the value of options

Q : Determining the conversion value of the bond

Q : Residual dividend policy-total dividends

Q : Determining the tie ratio

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Q : Computing the expected return of portfolio

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