Calculate the conversion price formula (CPF) and market price formula (MPF) prices for an offering involving an

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Calculate the conversion price formula (CPF) and market price formula (MPF) prices for an offering involving an existing conversion price of $1, a hypothesized market price of $2, and a new offering price of $0.95 for 1,000 shares with 2,000 shares outstanding before the new issue. Relate the new conversion price to the implied new conversion ratio.

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Entrepreneurial Finance

ISBN: 978-0538478151

4th edition

Authors: J . chris leach, Ronald w. melicher

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