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Acompanyhas 8% convertible bonds in issue. The bonds are convertible in 3 years time at a ratio of 20 ordinary shares per $100 nominal value bond.
Each share:
* has a current market value of $5.60
* is expected to grow at 5% each year
What is the expected conversion valueof each$100nominal value bondin 3 years' time?
Suggested Answer: A
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9 comments · newest first
AD
Adelina
12 months ago
Definitely leaning towards option B, $117.6 sounds right!
MA
Marge
1 year ago
I think the expected conversion value is around $112.
SA
Sarina
1 year ago
Wait, how can we be sure the shares will grow like that?
TA
Tamie
1 year ago
So, if shares grow at 5%, that’s a solid return!
KI
Kip
1 year ago
The conversion ratio is 20 shares for a $100 bond.
DE
Deonna
1 year ago
I'm pretty sure this is a false positive alert. The question states there's no active attack, so the IDS must have triggered an alarm incorrectly.
RE
Reyes
1 year ago
Wait, I'm confused. Is a higher combined ratio better or worse for the insurer? I need to review my notes on this insurance terminology to make sure I have it straight before answering.
AN
Annette
1 year ago
This question covers a lot of ground. I'll need to review my notes on DRP to make sure I'm considering all the important factors.
DO
Dona
1 year ago
This one seems pretty straightforward. If the Facebook app isn't installed, the examiner would likely find the artifacts in the device's web browser cache or local storage.