Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
In September 2014, Twitter raised $1.8 billion in a convertible bond offering. The offering includes a 5-year tranche, with notes due in 2019 carrying a .25% interest rate and 7-year notes due in 2021 carrying a 1% interest rate. Twitter's stock price was $52.57 at the time.
The conversion rate is 12.8793 shares per $1000 bond. Calculate the conversion price in dollars and the premium as a percentage. Then discuss reasons to explain the size of the premium. Explain why Twitter decided to issue convertible bonds instead of regular bonds or stock. And why would an investor prefer convertible bonds to the company's stock?
Calculate the effective Weighted Average Cost of Capital (WACC)using datafrom the consolidated financial statements, a value of 1.1 for ß and a risk-free rate of 1.3%.
1.) How should this company use its free cash flow for dividend distributions to shareholders or repurchasing of stock?
Why is there a cost to retained earnings in investor-owned business?
Do you agree with this arrangement? How would you feel as an investor in a company that utilizes carbon credits to legally exceed its pollution limits?
what is the source of potential agency conflicts between owners and bondholders? who is the agent and who is the
Bond J is a 4 percent coupon bond. Bond K is a 10 percent coupon bond. Both bonds have 12 years to maturity, make semiannual payments, and have a YTM of 7 percent.
baba company is a manufacturing firm that uses job-order costing. the companys inventory balances were as follows at
Suppose you helped the medical professionals analyze their decision using expected monetary value as decision criterion. This group has also assessed their utility for money:
Use the Black-Scholes model to find the price for a call option with the following inputs: (1) current stock price is $30, (2) exercise price is $35, (3) time to expiration is 4 months, (4) annualized risk-free rate is 5%, and (5) variance of stock r..
Determine the value of the portfolio if the domestic stock increases by 2 percent, the domestic stock futures contract increases by 1.8 percent, the foreign stock increases by 1.2 percent, and the foreign stock futures contract increases by 1.4 pe..
The estimated values of the yearly ATCF (after tax cash flows) of a Project are given in the Table below. The duration of the Project is six years. The initial cost of the Project is $2,800,000. MARR (the minimum attractive rate of return) is 12%.
You are considering buying some stocks in Continental Grain. Which of the following are examples of non-diversifiable risks?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd