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Chapter 17, Problem 17.3WUE

Newcomb Company has a bond outstanding with a $1,000 par value and convertible at $30 per share. What is the bond’s conversion ratio? If the underlying stock currently trades at $25 per share, what is the bond’s conversion value? Would it be advisable for a bondholder to exercise the conversion option?

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Chapter 17 Solutions

Principles of Managerial Finance, Student Value Edition Plus MyLab Finance with Pearson eText - Access Card Package (15th Edition) (Pearson Series in Finance)

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Bonds 101 (DETAILED EXPLANATION FOR BEGINNERS); Author: It's Your Girl Rose;https://www.youtube.com/watch?v=Gskqx8dy9To;License: Standard Youtube License