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:
b. 0.77
Explanation:
The formula to compute the loan to value ratio is shown below:
= Loan amount ÷ Purchase price
= $1,000,000 ÷ $1,300,000
= 0.77
It shows a relationship between the loan amount and the purchase price so that the accurate ratio can come
All other information that is given is not relevant as it is related to the debt yield ratio. Hence, ignored it
Answer:
Individual income taxes.
Explanation:
This has been the largest single source of federal revenue since 1950.
Countries are involve in trade. U.S. exports of goods and services (on a national income account basis) are about 12 percent of U.S.
<h3>What is US economy based on?</h3>
The U.S. economy is one that has aa highly creative and technologically-advanced services sector, which is said to own about 80% of its output.
The U.S. economy is lead by services-oriented companies in sectors such as technology, financial services, healthcare, etc.
Studies has shown that the US economy exports as at 2019, was said to have exports of goods and services from the United States to about 11.73 percent of its gross domestic product (GDP).
Learn more about exports from
brainly.com/question/20537024
Answer:
so big what is this I can't understand
