Business, 23.03.2021 01:20 samueladetoro54

A French corporation issued a convertible bond in May. 2017, due May. 15, 2029 (12 years). It has a coupon of 5%, paid annually. The bond, with a par value of $1,000, is convertible into 40 shares of common stock. Investors paid par value for the bonds, and the price is unchanged. If this company were to issue a straight (non-convertible) bond, it would have had to pay a yield of 11%. The current stock price is $21 per share, and the stock pays an annual dividend of $0.50 per share. From the point of view of the investor, what is the breakeven (years) between buying the stock, and buying the convertible bond

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 06:10

Investment x offers to pay you $5,700 per year for 9 years, whereas investment y offers to pay you $8,300 per year for 5 years. if the discount rate is 6 percent, what is the present value of these cash flows? (do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) present value investment x $ investment y $ if the discount rate is 16 percent, what is the present value of these cash flows? (do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) present value investment x $ investment y

Answers: 1

Answer

Business, 22.06.2019 15:10

Paddock pools constructed a swimming pool and deck for the jensens' home. paddock installed the wrong trim on the pool. it would cost $2800 to change the trim-one-fifth of the total cost of the pool. the jensens refuse to pay anything for the pool. the paddock's best defense is: (a) duress (b) substanial performance (c)mistake (d) failure of conditions

Answers: 3

Answer

Business, 22.06.2019 15:20

Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?

Answers: 2

Answer

Business, 22.06.2019 21:20

How success was the first day of the bus boycott

Answers: 1

Answer

You know the right answer?

A French corporation issued a convertible bond in May. 2017, due May. 15, 2029 (12 years). It has a...

Questions