Hannon Home Products Inc. recently issued $2.2 million worth of 8…

/in /by

Question Answered step-by-step Hannon Home Products Inc. recently issued $2.2 million worth of 8… Hannon Home Products Inc. recently issued $2.2 million worth of 8 percent convertible debentures. Each convertible bond has a face value of $1,000. Each convertible bond can be converted into 20.7 shares of common stock anytime before maturity. The stock price is $37.35, and the market value of each bond is $1,090. (Do not round intermediate calculations. Round the answers to 2 decimal places. Omit $ sign in your response.) a. What is the conversion ratio?  Conversion ratio             b. What is the conversion price? Conversion price           $  c. What is the conversion premium? Conversion premium             % d. What is the conversion value? Conversion value           $  e. If the stock price increases by $3, what is the new conversion value? Business Finance IAF 620 Share QuestionEmailCopy link Comments (0)