Answer:
a. $880.74
b. 13 years
Explanation:
a. Conversion ratio = Current Value of bond / Conversion price = 1,000 / 93.4 = 10.71
Conversion price of bond = 10.71 × 28.60 = $306.31
Coupon = Par value of bond * Coupon rate = $1,000 * 6.4% = $64
Present value of straight debt is calculated below:
Present Value = $64 × [1-(1+7.4%)^-30 / 7.4%] + [$1,000 / (1+7.4%)^30]
= $64*11.93 + $117.46
= $763.28 + $117.46
= $880.74
.
Therefore, the minimum value of bond is $880.74
b. Conversion ratio = 10.71
Current stock price = $28.6
Suppose number of year the stock will take to reach above $1,140 is t.
Conversion value = Current stock price * Conversion ratio*(1+10.8%)^t
$1,140 = $28.6 * 10.71 * (1.108)^t
(1.108)^t = 3.7218
t = 12.8145 year.
t = 13 years
Answer: Post acquisition integration (B)
Explanation:
Post acquisition integration is a complex process of rearranging and combining businesses to materialize the potential efficiencies and synergies which usually motivate acquisitions and mergers.
The process, is usually lengthy and resource intensive. The importance of post acquisition integration cannot be understated, as it allows an acquiror to acquire the long-term value that he or she seeks from the transaction. It is a vital determinant on value creation for the shareholders in acquisitions and mergers.
Answer:
The correct answer is (A)
Explanation:
Every individual has a different sense of thinking and perceiving things and moments. Perceiving things is all about judging, observing and percipient. IN that regard, two people having the same experience can perceive things differently. People interpret things based on their perceptions. Perception can change through experience and knowledge. So, an important factor which shape perception depends on perceivers.
