Altech Inc. has a convertible bond with a face value of $1,000 and coupon rate of 6 percent. The bond will mature in 10 years, and its current price is $950. The bond can be converted at any time into 25 shares of Altech Inc., whose current share price is $40. If the holder decides to convert the bond into shares, what is the percentage premium/discount of the conversion relative to the current share price?
Answer to relevant Questions1. Jason bought 30,000 shares of CTB Inc. on January 12, 2013. At that time, CTB Inc. had 2 million common shares outstanding. Calculate the portion of CTB Inc. that Jason owns.a. 2.3 percentb. 1.4 percentc. 6.0 percentd. ...Fill in the missing information in the followingtable:Spinnaker Supplies Ltd. currently doesn’t pay any dividends but is expected to start paying dividends in five years. The first dividend is expected to be $1.00 and to grow at 6 percent thereafter. The required rate of ...TelTec Inc. stock is expected to sell for $10 per share four years from now. TelTec has just paid a dividend of 50 cents per share. Dividends are expected to grow at a rate of 5 percent per year for the next four years. ...As part of your duties at Apex Financial Ltd. you have been asked to review the analysis carried out by a rival company—Prime Group—of the WX Media Company. WX has had a constant P/E ratio for the past five years. ...
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