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mixer [17]
3 years ago
15

Supreme Industries issues the following announcement to holders of an issue of​ callable, convertible​ notes: ​"Prior to the clo

se of business on May​ 17, 2008, holders may convert their Notes into shares of Supreme Industries common stock at 29.45 shares of Supreme Industries common stock per​ $1000 principal amount of the Notes. Cash will be paid in lieu of fractional shares. On April​ 16, 2008, the last reported sale price of Supreme Industries common stock on the NYSE was $ 22.60 per​ share." If on May​ 17, Supreme Industries is trading as $ 24.30​, what is the value of common stock a holder of a​ $1,000 note would​ receive?
Business
1 answer:
777dan777 [17]3 years ago
4 0

Answer:

The value received by holder of $1,000 is $831.8

Explanation:

$1000 notes will get 33.95 shares which says 33 shares and teh cash equal to the 0.95 shares value. The convertible Bonds (CB) are converted at the will of holders into the shares or cash. The conversion price is the trading price of the share which is $24.20. Thus, a hoder of $1,000 will receive the following value:-

1) 33 shares at 24.50 which is equal to :-

 =33\times 24.50=808.5

2) The cash which is equal to 0.95 share. 1 share is valued at $24.50 thus 0.95 share will be valued at:-

 \frac{24.5}{1}\times 0.95=23.3

Thus total value of the common stock will be :

808.5+23.3=831.8

Thus, the value received by holder of $1,000 is $831.8

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Answer:

True

Explanation:

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The reason why the answer is true is that Darren is that the time he paid the money in July 15, 2020, it was still within the time he allowed to still pay for the year 2019, that's why he considered as though he paid in 2019.

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3 years ago
A fitness center is planning to invest in a specialized exercise equipment. This equipment is highly effective, but the club mem
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Answer:

job/technical training

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3 years ago
Towson Corp., was organized on January 2, 2018. During the first year of operation, Towson issued 50,000 shares of $9 par value
Naya [18.7K]

Paid in Capital Common Stock in Excess to par = (35-9)*50,000=1,300,000

Paid in Capital Common Stock in Excess to par is the difference between the par value of the share and the market value or fair value it was sold at, in this case the par value per share was 9 and market value was 35 , there fore we multiplied their difference by 50,000 to get the total difference.

Explanation:

3 0
3 years ago
To create a competitive advantage that is sustainable over time, the international company should try to develop competencies th
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<span>To create a competitive advantage that is sustainable over time, the international company should try to develop competencies that create value for customers and value they are willing to pay for in that item.

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3 years ago
DW has an ending Retained Earnings balance of $51,600. If during the year DW paid dividends of $4,100 and had net income of $21,
VikaD [51]

Answer:

$34,600

Explanation:

The computation of beginning retained earnings balance is seen below:

But we know that;

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$51,600 = Beginning retained earnings + $21,100 - $4,100

Beginning retained earnings = $51,600 - $21,100 + $4,100

Beginning retained earnings = $34,600

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3 years ago
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