When should a firm force conversion of convertibles? Why?
Answer to relevant QuestionsA warrant with six months until expiration entitles its owner to buy 10 shares of the issuing firm ’ s common stock for an exercise price of $31 per share. If the current market price of the stock is $15 per share, will ...A warrant gives its owner the right to purchase three shares of common stock at an exercise price of $53 per share. The current market price of the stock is $58. What is the minimum value of the warrant?Survivor, Inc., an all-equity firm, has eight shares of stock outstanding. Yesterday, the firm’s assets consisted of nine ounces of platinum, currently worth $1,750 per ounce. Today, the company issued Ms. Wu a warrant for ...What is the difference between a forward contract and a futures contract? Why do you think that futures contracts are much more common? Are there any circumstances under which you might prefer to use forwards instead of ...If a U.S. company exports its goods to Japan, how would it use a futures contract on Japanese yen to hedge its exchange rate risk? Would it buy or sell yen futures? Does the way the exchange rate is quoted in the futures ...
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