Eckely, Inc., recently issued bonds with a conversion ratio of 17.5. If the stock price at the

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Eckely, Inc., recently issued bonds with a conversion ratio of 17.5. If the stock price at the time of the bond issue was $48.53, what was the conversion premium?

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Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Question Posted: Aug 28, 2014 10:29 AM

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Eckely, Inc., recently issued bonds with a conversion ratio of 17.5. If the stock price at the

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First we need to find the conversion price which is the par value div...View the full answer

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