1. Management reporting: Are balanced scorecards and strategy maps necessary for the management reporting system? What role, if any, do they play beyond key performance indicators?
2. Consider a 7-year convertible bond with a coupon of 7% and face value (principal) of $1000. The bond gets converted into equity in the case of an adverse event with probability 30%. The value of equity is given by a perpetuity with annual cash flow of $12. The required return on the bond is 6% and on the equity is 11%. What is the price of the bond?