Conversion ratio, Financial Management

It is the number that tells how many common stocks (or preference stocks) will the bondholder receive at the time of conversion. It is usually constant over the life of the security and protect against losses caused by stock splits or large stock dividends.

         Conversion ratio = Number of shares per bond if the bond is converted

Posted Date: 9/8/2012 6:02:24 AM | Location : United States







Related Discussions:- Conversion ratio, Assignment Help, Ask Question on Conversion ratio, Get Answer, Expert's Help, Conversion ratio Discussions

Write discussion on Conversion ratio
Your posts are moderated
Related Questions
These types of securities have more than one coupon rate and each subsequent coupon rate is higher (or lower) than the previous coupon rate. For

A 16% debenture of R5 000 is redeemable at a premium of 10% after 5 years. The fair rate of return on similar debentures is 14% before tax. Calculate the present value of the capit

Product Advantages: A firm that has developed a reputation for superior products in the domestic market may find acceptance from the foreign consumers as well. Hence, such firm

Investors are always interested in estimating the price sensitivity of a bond to change in market interest rates. Let us study how prices change both in terms of

The director of capital budgeting for a firm has recognized two mutually exclusive projects, A and B, with the following expected net cash flows:

Define and discuss indirect world systematic risk. The indirect world systematic risk can be illustrated as the covariance among a nontradable asset and the world market portfo

Determination of Credit Terms:- The second feature of receivable management, subsequent to setting the credit standards and assessment of credit worthiness of the customers, i

Explain about the International Finance When money crosses international boundaries businesses,individualsand governments should deal with special kinds of problems. Every c

Explain about the investment decision- financial management The investment decision relates to selection of assets in which funds would be invested by a firm. Assets which can

Can some one tell me how to calculate payback period and which formula i used to calculated payback period? Explain!!!!