What is the value of the common stock based on the market


Given the following information concerning a convertible bond:

            Principal: $ 1,000      Coupon: 4%                Maturity: 20 years    

            Call price: $ 1,030       Conversion price: $ 25                                 

            Market Price of common stock $ 19.00   Market Price of Bond $ 1,020.

A) What is the value of the common stock based on the market price of the bond?

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Financial Management: What is the value of the common stock based on the market
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