A company has in issue 8% debentures 2010. On maturity the debentures may be redeemed at par

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A company has in issue 8% debentures 2010. On maturity the debentures may be redeemed at par or converted to 20 ordinary shares in company for every $100 nominal. The share price is currently $4.50 per share. What will debenture holders choose to do on maturity if the share price of the company in 2010 is

(i) $4 per share

(ii)$6 per share

Posted Date: May 18, 2024 10:13 PM

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A company has in issue 8% debentures 2010. On maturity the debentures may be redeemed at par

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