Maple aircraft has issued a convertible subordinated


Maple Aircraft has issued a convertible subordinated debenture at 6.00% interest due 2020. The conversion price is $64.00 and the debenture is callable at 104.00% of face value. The market price of the convertible is 89.25% of face value, and the price of the common is $58.50. Assume that the value of the bond in the absence of a conversion feature is about 63.25% of face value. Assume a face value of $1,000

For the remaining questions, assume the conversion price is $64.00 as stated in the original problem

How much is the convertible holder paying for the option to buy one share of common stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Financial Management: Maple aircraft has issued a convertible subordinated
Reference No:- TGS01706050

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