A $1,000 corporate bond is convertible to 80 shares of the corporation's common stock. What is the minimum price that the stock must obtain before bondholders would consider converting the bond to stock? 1. $152. $103. $25 4. $20
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- assume that you purchased a $1,000 convertible corporate bond. Also assume the bond can be converted to 28.5 shares of the firm’s stock. What is the dollar value that the stock must reach before investors would consider converting to common stock?A firm has an outstanding bond with a $1,000 par value that is convertible at $40 per share of common stock. If the current market value of common stock per share is $45, the conversion value of the bond is a. 1,000 b. 880 c. 1,125 d. 1,2002. Bell Canada issued a $1,000 convertible corporate bond. Each bond is convertible to 22 shares of the firm's common stock. a. What price must common stocks have for the investors to consider converting their bond into common stocks? b. If you owned one of these convertible bonds in Bell Canada, would you convert your bond to common stocks if the stock's price reached the conversion price? Explain your answer.
- 37 A company issues a $1,000 bond that is convertible into 100 shares of common stock with a par value of $1. At conversion, the Accumulated Discount on Bonds Payable is $100. What information should be included in the journal entry for the conversion? Debit Bonds Payable for $1,000 Credit Common Stock for $1,000 Credit Paid-in Capital in Excess of Par-Common Stock for $100 O Debit Discount on Bonds Payable for $100 NEXT > BOOKMARKQuestion A .A $1,000 par value bond with an annual coupon rate of 5%, and callable at $1,050, can be converted into 18 shares of common stock. Currently, common stock sells for $55 and the bond sells for $1,020. How much will this bond be worth upon conversion (conversion value)? $990. $1,020. $1,050. $950. $1,000. $1,055. Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this lineQuestion 4.) A corporation issues 2,500 shares of common stock for P45,000. The stock has stated value of P10 per share . The journal entry to record the stock issuance would include a credit to Share Capital of? A. P20,000 B. P25,000 C. P45,000 D. P5,000
- What happens in the case of a bond selling for $1,000 that can be converted to 20 shares of stock that are currently selling for $80 per share?A conversion of a face value $1 million convertible bond for $1 million of common stock would most likely be: A . reported as a $1 million investing cash infl ow and outfl owAirways common stock is currently priced at $39. its 8 percent convertible debentures issued at their $1,000 par and are currently priced at $1,050. Each debenture can be converted into 25 shares of common stock at any time before 2010. What is the conversion value of the bond? a. $1,000 b. $975 c. $900 d. $1,050
- Conversion (or stock) value What is the conversion (or stock) value of each of the following convertible bonds? 1. A $1,000-par-value bond that is convertible into 25 shares of common stock. The common stock is currently selling for $50 per share.Question 3.) A corporation issues 2,500 shares of common stock for P45,000. The stock has stated value of P10 per share. The journal entry to record the stock issuance would include a credit to Additional Paid in Capital of? A. P45,000 B. P25.000 C. P20,000 D. P5,0001. If the quoted price of a corporate bond is “ 105”, that means the bond price is a. $105 b. $1050 c. $1105 d. $995 2. The present value of $1000 to be received in 5 years is — if the discount rate is 12.78% a. $368 b. $494 c. $548 d. $687 3. At what rate must $287.50 be compounded annually for it to grow to $$650.01 in 14 years? a. 6 percent b. 5 percent c. 7 percent d. 8 percent
