Need answer please Tristar Corporation issued a $1,000 bond at par.The common stock has a market price of $45.The conversion price is $58.a. Into how many shares can the bond beconverted?b. What is the conversion value of the bond?c. What is the conversion premium?

To find the conversion premium, we first need to calculate the number of shares the bond can be…

Answered: Tristar Corporation issued a $1,000…

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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Tristar Corporation issued a $1,000 bond at par. The common stock has a market price of $45. The conversion price is $58. a. Into how many shares can the bond be converted? b. What is the conversion value of the bond? c. What is the conversion premium?