WK6 PA2

Maple Aircraft has issued a 4¾% convertible subordinated debenture due 3 years from now. The
conversion price is $47.00 and the debenture is callable at 102.75% of face value. The market
price of the convertible is 91% of face value, and the price of the common is $41.50. Assume
that the value of the bond in the absence of a conversion feature is about 65% of face value.
a. In the absence of the conversion feature, what is the current yield and yield to maturity?
b. What is the conversion ratio of the debenture?
c. If the conversion ratio were 50, what would be the conversion price?
d. What is the conversion value?
e. At what stock price is the conversion value equal to the bond value?
f. Can the market price be less than the conversion value?
g. How much is the convertible holder paying for the option to buy one share of common
stock?
h. By how much does the common have to rise after 3 years to justify conversion?
Please explain your answer in detail and provide in-text citations.

********************************
 6 pages.  needed 8 references from the book (attached). APA 7th fromat

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your paper today and save 15% with the discount code HAPPY

X
error: Content is protected !!
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 323 412 5597

Feel free to ask questions, clarifications, or discounts available when placing an order.