A convertible debenture is convertible in ~ $25. It has actually a nondilutive function in that is indenture. If a share dividend is distributed, which two of the complying with statements are TRUE?1. The switch price will certainly be reduced2. The switch price will certainly be increased3. The conversion ratio will be reduced4. The conversion proportion will be increased


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XYZ convertible debentures room convertible right into 20 shares of XYZ Corporation common stock. If the bonds were marketing in the sector at $960, what would certainly the usual stock need to be offering for to be on parity?
The Barge Towing Corporation has actually announced in a tombstone advertisement that that will problem $500,000,000 of 6 1/2% convertible subordinated debenture binding convertible into usual stock in ~ $10.50. The bonds will mature in November 2040 and are gift issued in ~ a $1,000 par value. The conversion ratio of the bonds is approximately:
Brawn subordinated debentures have a conversion price that $40. The bond are marketing in the sector for 91% the par value. If the usual stock is trading in ~ $36, which 2 of the adhering to statements space TRUE?1. The share is selling at a discount come parity v the bond2. The share is selling at a premium to parity v the bond3. A profitable arbitrage opportunity exists by liquidating the stock after convert the bond4. Liquidating the stock after converting the bond would certainly not be right now profitable
A corporation has issued a bond with a 5% coupon the is convertible into common stock at $40. The shortcut is selling right now trading in ~ par and the stock is selling at $39.00. If the bond boosted in worth by 20 points, what is same of the stock?
Which two of the following statements worrying convertible bonds room TRUE?1. Coupon prices are usually higher than nonconvertible bonds of the very same issuer2. Convertible bondholders are taken into consideration creditors the the corporation3. Convertible bonds room usually issued by providers with strong credit ratings4. That is possible that a convertible bond will sell at a price based solely on its natural value together a bond
A 7% convertible bond has a conversion proportion of 40. The bond has a nondilutive feature and the typical is selling at $43 a share. If the agency distributes a 10% stock dividend, i beg your pardon of the complying with statements is TRUE concerning the convertible bond?
A convertible bond has a counter price of $50 and also is right now selling in the sector at $1,100. The conversion proportion is:
If an issuer"s convertible bonds are converted by bondholders, what is the impact on the issuer"s outstanding typical stock?
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