Jackson Metals, Inc., issued a $1,000 convertible corporate bond. Each bond is convertible to 47 shares of the firm's common stock. a. What price must the common stock reach before investors would consider converting their bond to common stock? (Round your answer to 2 decimal places. Omit the "S" sign in your response.)

Jackson Metals, Inc., issued a $1,000 convertible corporate bond. Each bond is convertible to 47 shares of the firm's common stock. a. What price must the common stock reach before investors would consider converting their bond to common stock? (Round your answer to 2 decimal places. Omit the "S" sign in your response.)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter6: Bonds (debt) - Characteristics And Valuation

Section: Chapter Questions

Problem 2PROB

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