Laybuy Ltd is the target of a takeover bid. It has $1.5 million worth of convertible bonds outstanding with face value of $1000 for each bond.

Conversion Ratio (CV) = Number of Laybuy common shares issued when debt converted at face value = 25
If the convertible bonds are converted into shares, how many new shares will Laybuy have?

Answer rating: 100% (QA)

To determine the number of new shares that Laybuy will have if the convertibl... View the full answer