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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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?
Transcribed Image Text: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?
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