A hypothetical question here. If a mandatory convertible bond is classified as an equity by the company
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A hypothetical question here. If a mandatory convertible bond is classified as an equity by the company but it seems that the company is going to be redeeming said MCB before conversion as shown by its previous redemptions of similar MCBs recently, can we calculate its cost using the cost of debt or must we still treat it as an equity and calculate the cost of the MCB using cost of equity (e.g. CAPM)? how we can calculate using said method?
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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