Assume that BHP Billiton, an Anglo-Australian multinational public company, has issued the following convertible bonds. What is
Question:
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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To calculate the conversion or stock value for each of the convertible bonds we ne...View the full answer
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Related Book For 
Principles Of Managerial Finance
ISBN: 9781292400648
16th Global Edition
Authors: Chad Zutter, Scott Smart
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