. You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.69 and its convertible debt is now callable. See thetable below:Convertible Subordinated NotesIssued under U.S. SEC Rule 144AAggregate principal amountProceeds net of offering costsCouponConversion ratioCall dateCall priceMaturity$100 million$97.0 million0%Bondholders107.3296 shares per $1,000 principal amountJuly 1, 2008100%July 1, 2010a. What is the value of the shares the bondholders would receive per $1,000 bond if they convert?The value the bondholders would receive is $(Round to the nearest cent.)b. What is the value per $1,000 bond they would receive under the call?The value they would receive under the call is $. (Round to the nearest cent.)c. If you call the bonds, will the bondholders convert into shares or accept the call price? (Select from the drop-down menus.)convert into shares if you call the bonds, as the value of converting isthan the value received under the call.

value of shares for $ 1000 bond = conversion ratio x stock price…

You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.69 and its convertible debt is now callable. See the cable below: Convertible Subordinated Notes Issued under U.S. SEC Rule 144A Aggregate principal amount Proceeds net of offering costs Coupon Conversion ratio Call date Call price Maturity $100 million $97.0 million 0% 107.3296 shares per $1,000 principal amount July 1, 2008 100% July 1, 2010

You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.69 and its convertible debt is now callable. See the cable below: Convertible Subordinated Notes Issued under U.S. SEC Rule 144A Aggregate principal amount Proceeds net of offering costs Coupon Conversion ratio Call date Call price Maturity $100 million $97.0 million 0% 107.3296 shares per $1,000 principal amount July 1, 2008 100% July 1, 2010

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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