Assume you purchased a $2,000 convertible corporate bond. The bond can be converted to 40 shares of the firm's stock. What is the dollar value that the stock must reach before investors would consider converting to common stock?
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- 1. Which of the following assets is most likely to trade over the counter but still have high liquidity? a. A short-term Treasury bond b. A long-term corporate bond c. A short-term corporate bond d. A large-cap stock e. A small-cap stock 2. Assume you purchased 600 shares of XYZ common stock on margin at $35 per share from your broker. If the initial margin is 60%, the amount you borrowed from the broker is closest to _________. a. $8,500 b. $21,000 c. $29,500 d. $12,500 e. $16,000 3. You invest $1,550 in security A with a beta of 1.4 and $1,350 in security B with a beta of 0.4. The beta of this portfolio is closest to _____________ . a. 0.95 b. 0.90 c. 1.35 d. 1.05 e. 1.15 4. Which of the following orders is most likely to increase the difference between the highest bid price and the lowest ask price? a. A large market order b. A large limit order c. A small limit order d. A small market order e. There will be no major difference between these 5. Bond X is worth $91 today.…Can you please answer?Suppose you own a convertible bond that has a conversion ratio equal to 62. Each convertible bond has a face value equal to $1,000. The current market value of the company's common stock is $16, and the bond is selling for $1,042. If you want to liquidate your position today because you need money to pay your rent, should you sell the bond or should you convert the bond into common stock and then sell the stock? Explain your answer. Round your answers to the nearest dollar. Selling the bond would generate $_______ . Converting the bond and selling the common stock would generate $_______ . Thus, it would be better to SELL THE BOND / CONVERT THE BOND INTO COMMON STOCK AND THEN SELL THE STOCK
- Suppose you own a convertible bond that has a conversion ratio equal to 58. Each convertible bond has a face value equal to $1,000. The current market value of the company's common stock is $17, and the bond is selling for $1,036. If you want to liquidate your position today because you need money to pay your rent, should you sell the bond or should you convert the bond into common stock and then sell the stock? Explain your answer. Round your answers to the nearest dollar. Selling the bond would generate $ . Converting the bond and selling the common stock would generate $ . Thus, it would be better to .Swift Bicycles plans to issue convertible bonds to finance its future growth. Each convertible bond has a face value equal to $1,000 and can be converted into 25 shares of common stock. What is the minimum stock price that would make it beneficial for bondholders to convert their bonds?Do fast answer of this accounting questions
- A$1,000 face value convertible bond has a conversion ratio of 31 and is about to mature. Ignoring any transaction costs, what price must the stock surpass in order for you to convert? The required price per share will be $ (Round to the nearest cent.)Please need help with this financial accounting questiona)The equity shares of Cyberdyne Plc have a beta value of 0.90. The risk-free rate of return is 5% and the market risk premium is 3%. Corporation tax is 19%. .Calculate the required rate of return on the shares of Cyberdyne Plc and explain the impact of beta on the shares of the company. b) Outline five benefits/advantages that a Stock Exchange listing could offer a company. c) Calculate the Yield to Maturity (YTM) of a £100 nominal value irredeemable bond with a coupon rate of 7% and a market value of £105. d) A 10-year corporate bond has 6 years remaining until redemption. The par value is £100and it pays a 4% coupon on an annual basis. The yield to maturity is 8%. Using the above information, calculate the market price of the bond.
- a) The equity shares of Cyberdyne Plc have a beta value of 0.90. The risk-free rate of return is 5% and the market risk premium is 3%. Corporation tax is 19%.Calculate the required rate of return on the shares of Cyberdyne Plc and explain the impact of beta on the shares of the company. b) Outline five benefits/advantages that a Stock Exchange listing could offer a company. c) Calculate the Yield to Maturity (YTM) of a £100 nominal value irredeemable bond with a coupon rate of 7% and a market value of £105. d) A 10-year corporate bond has 6 years remaining until redemption. The par value is £100 and it pays a 4% coupon on an annual basis. The yield to maturity is 8%.Using the above information, calculate the market price of the bond.Need answer pleaseAssume that Almond Milk Company has a $1,000 face value bond with a stated coupon rate of 8.18 percent that is convertible into its common stock at $35.77. The bond is selling at $1,096.27 in the market. The common stock is selling for $33.84 and pays a dividend of 0.62 per share. Calculate the payback premium period.