convertible debentures. Each convertible bond has a face value of $1,000. Each convertible bond can be...

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convertible debentures. Each convertible bond has a face value of $1,000. Each convertible bond can be converted into 21 shares of common stock anytime before maturity. The stock price is $37.65 and the market value of each bond is $1,120. a. What is the conversion ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the conversion price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the conversion premium? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the conversion value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) e. If the stock price increases by $2, what is the new conversion value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Conversion ratio b. Conversion price c. Conversion premium d. Conversion value e. New conversion value % convertible debentures. Each convertible bond has a face value of $1,000. Each convertible bond can be converted into 21 shares of common stock anytime before maturity. The stock price is $37.65 and the market value of each bond is $1,120. a. What is the conversion ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the conversion price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the conversion premium? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the conversion value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) e. If the stock price increases by $2, what is the new conversion value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Conversion ratio b. Conversion price c. Conversion premium d. Conversion value e. New conversion value %

Answer rating: 100% (QA)

Step 12 Solution Following information are given Face Value of Bond 1000 Stock Price 3765 Market Val... View the full answer