Question: Moving to the next question prevents changes to this answer tion 4 firm with the following balance sheet is considering issuing $100,000 in convertible debt
Moving to the next question prevents changes to this answer tion 4 firm with the following balance sheet is considering issuing $100,000 in convertible debt CL Common stock, par value $1/share RE 100,000 50,000 50,000 200,000 Total Assets 200,000 Total Claims Suppose the current stock price is 10 dollars per share The m sets the conversion price by applying a 30% premium to he current stock price How much would the conversion price be? . Assuming conversion happens, how many shares will be issued? Fill in the firm's balance sheet as it would appear immediately following conversion CL Common stock, par $1 Paid-in capital RE Total Claims Total Assets d In a single concise sentence, explain why the balance sheet would be larger if the firm issued warrants instead (assuming the warrants were exercised) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac,)
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