Assume that BHP Billiton, an Anglo-Australian multinational public company, has issued the following convertible bonds. What is

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Assume that BHP Billiton, an Anglo-Australian multinational public company, has issued the following convertible bonds. What is the conversion (or stock) value for each of these?

a. A bond of A$1,000 par value that is convertible into 10 shares of common stock.

The common stock is currently selling for A$25 per share.

b. A bond of A$1,000 par value that is convertible into 17.5 shares of common stock. The common stock is currently selling for A$20 per share.

c. A bond of A$1,000 par value that is convertible into 20 shares of common stock.

The common stock is currently selling for A$10 per share.

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Principles Of Managerial Finance

ISBN: 9781292400648

16th Global Edition

Authors: Chad Zutter, Scott Smart

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