How many shares of stock are received on conversion

Assignment Help Financial Management

Reference no: EM131190909

Lucky Dog Pet Food has a $1000 convertible bond outstanding with a conversion price of $12.00 per share. The bond pays an interest payment of $80 annually and matures in 20 years unless converted into common stock earlier or called by the company. The common stock currently sells for $11.25 per share. If the bond sold at its theoretical bond value it would be priced competitively to yield 10% with bonds of the same risk class. A. How many shares of stock are received on conversion? B) What is the conversion value? C) What is the pure bond value?

Reference no: EM131190909

Questions Cloud

Calculate the conversion ratio and conversion value : The XLarge Corporation has a convertible bond outstanding with a conversion price of $35 per share. The $1000 par value bonds have a 6% annual coupon rate, paid annually, and 20 years to maturity. The firm's common stock is currently selling for $44 ..

Explain the ethical implications of both options : Examine the current legal and regulatory requirements that are present in this situation. Evaluate the legal, professional, and personal risks associated with both options.

What are areas you believe you still need to improve upon : What are the areas you believe you still need to improve upon? What is the status of the goals you set for yourself in Week One of the course? What are the new goals that you want to achieve after finishing this course?

What are differences in education and training requirements : Provide your opinion about the major differences you found in your research on the competency requirements for psychologists, counselors, and social workers to engage in psychological testing and diagnosing clients.

How many shares of stock are received on conversion : Lucky Dog Pet Food has a $1000 convertible bond outstanding with a conversion price of $12.00 per share. The bond pays an interest payment of $80 annually and matures in 20 years unless converted into common stock earlier or called by the company. Ho..

Determine the donna ahern capital as of december 31 2009 : Using the accounting equation and considering each case independently, determine the following amounts: Donna Ahern, capital, as of December 31, 2009.

United states department of agriculture : According to the dietary guidelines from the United States Department of Agriculture, a healthful diet consists of fruits, vegetables, whole grains, lean protein, and dairy.

What is your own experience of friendships with persons : In what ways might it be possible for persons who are differently abled to enjoy deep and meaningful friendships compared with those outside of the community? What are the challenges?

Prepare a cash collections budget for each of the months : Prepare a merchandise purchases budget showing how many pools should be purchased in each of the months including July, August, and September. Prepare a cash collections budget for each of the months including July, August, and September

User Account

All Pages