Suppose a company has common stock that pays a dividend of


Suppose a company has common stock that pays a dividend of $0.10 per year and has a market price of $20 per share. Also assume that the company's $1,000 par value, 10.5% convertible bond sells at a market quote of 100, and has a conversion ratio of 30:1. Calculate the bond's conversion value.

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Business Management: Suppose a company has common stock that pays a dividend of
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