in 2006, kdee co issued $10 million of $1000 par value, 10% semiannual convertible debentures that come due in 2021. conversion price is 16.75 per share. the common stock was selling for $14 3/4 per share on a given date shortly after these convertibles were issued. these have a B rating (yielding 14% on that date). market price of the convertible was $970 on that date. required: conversion ratio, conversion value, security value, conversion premium

in 2006, kdee co issued $10 million of $1000 par value, 10% semiannual convertible debentures that come due in 2021. conversion price is 16.75 per share. the common stock was selling for $14 3/4 per share on a given date shortly after these convertibles were issued. these have a B rating (yielding 14% on that date). market price of the convertible was $970 on that date. required: conversion ratio, conversion value, security value, conversion premium

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please solve correctly with everything . also calculate diluted earnings per share.