Question: Please help answer the blanks Maple Aircraft has issued a 5.25% convertible subordinated debenture due 2023. The conversion price is $49.00 and the debenture is

 Please help answer the blanks Maple Aircraft has issued a 5.25%

Please help answer the blanks

Maple Aircraft has issued a 5.25% convertible subordinated debenture due 2023. The conversion price is $49.00 and the debenture is callable at 103.25% of face value. The market price of the convertible is 91.50% of face value, and the price of the common is $43.50. Assume that the value of the bond in the absence of a conversion feature is about 65.50% of face value. Assume a face value of $1,000. a. What is the conversion ratio of the debenture? (Round your answer to 2 decimal places.) b. If the conversion ratio were 50.50, what would be the conversion price? (Round your answer to 2 decimal places.) For the remaining questions, assume the conversion price is $49.00 as stated in the original problem. c. What is the conversion value? (Enter your answer as a percent rounded to 3 decimal places.) d. At what stock price is the conversion value equal to the bond value? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. Can the market price be less than the conversion value? Assume the investor is free to convert immediately. f. How much is the convertible holder paying for the option to buy one share of common stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) g. By how much does the common have to rise by 2023 to justify conversion? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a. 20.41 b. $ 19.80 C. % d. Conversion ratio Conversion price Conversion value Stock price Can the market price be less than the conversion value? Option value Price increase e. f. g. %

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