Debenture holder can exchange bond

Assignment Help Financial Management

Reference no: EM131920133

1. Roth, Inc. issued convertible bonds at their $1,000 par value 5 years ago The bonds currently sell for $1,050. At any time prior to maturity on August 1, 2031, a debenture holder can exchange a bond for 40 shares of common stock. What is the conversion price,?

$1.25

$26.25

$25.00

Not enough information provided

2. Reuth Corporation has 9% convertible debentures that were issued at par of $1000, and currently sell for $750. Each debenture can be converted into 35 shares of common stock. The company's current stock price is $25. What is the conversion value of the bond?

$875

$965

$975

$725

None of the above

Reference no: EM131920133

Questions Cloud

What is value of the firm-unlevered and levered : Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. What is the value of each firm?

How the regulations govern policy options : Describe the tension between the regime and the current situation. Explain the consequences to the firm of the outcome of the case.

How the risk factor is affecting your community or state : Using the Walden Library and other credible websites, research how this risk factor is affecting your community or state.

How does the project manager neutralize the risks : What are the known unknowns and the unknown unknowns of the project? How does the Project Manager neutralize these risks?

Debenture holder can exchange bond : At any time prior to maturity on August 1, 2031, a debenture holder can exchange a bond for 40 shares of common stock. What is the conversion price,?

What are the legal implications and what laws were involved : What are the legal implications and what laws were involved? Identify the ethical principles involved in this situation from the perspective of the patient.

How the company executed on their plan and platforms : Evaluate how the company executed on their plan and platforms. Analyze the company's messaging from a qualitative perspective.

How much are you willing to pay to buy share : How much are you willing to pay to buy a share of this stock today if your required return is 12.6 percent?

Prepare a legal brief on the us supreme court ruling : Prepare a legal brief on the U.S. Supreme Court ruling in Kentucky v. King, 563 U.S. ___ (2011) .

User Account

All Pages