Question

In: Finance

*Please answer with full clear steps thank you* Recently, Orillia Real Estate Development Corp. issued 6%...

*Please answer with full clear steps thank you*

Recently, Orillia Real Estate Development Corp. issued 6% Conver0ble Debentures with a face value of $1,000. The coupons are payable semi-annually and the debenture matures in 10 years. The conversion price of the debentures is $20 per share, giving a conversion rate of 50 shares per debenture ($1,000 / $20). Debentures without a conversion feature, but with the same level of risk are currently providing a yield to maturity of 8% compounded semi-annually. The shares are currently trading at $18. What is the minimum price at which the Orillia Real Estate Development Corp. conver0ble debentures should sell?

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

**Please answer with full steps, thank you so much! A firm is debating whether or not...
**Please answer with full steps, thank you so much! A firm is debating whether or not to conduct a share repurchase or pay a special dividend with $2,000,000 cash. Current EPS is $3.00 per share, and the 500,000 shares outstanding currently sell for $40 each. You own exactly 1,000 shares. a) If the firm makes the special dividend payment, what will your total wealth be? b) If the firm repurchases shares, how many shares will be repurchased, and what will...
Please answer all 4 questions. thank you. 1.) In 2019, Jonathan pays real estate taxes of...
Please answer all 4 questions. thank you. 1.) In 2019, Jonathan pays real estate taxes of $18,000 and New York State income taxes of $17,000. Assuming he itemizes, what deduction for taxes can Jonathan claim in 2019? a. $28,000 b. $10,000 c. $27,000 d. $35,000 2.) Interest paid or accrued during 2018 on aggregate acquisition indebtedness of $2 million or less ($1 million or less for married persons filing separate returns) is deductible as qualified residence interest. a.)True b.) False...
Please, I need a correct answer and clear explanation. Thank you, (Determine expenses) The following are...
Please, I need a correct answer and clear explanation. Thank you, (Determine expenses) The following are activities in a three-month period for Basiliadis Company: 1.A new lease for the business premises goes into effect on October 1 and increases the rent from $1,000 to $1,150 per month. The rent for the next month is always prepaid on the last day of the current month. Accordingly, rent of $1,000 was paid on August 31, and $1,150 was paid on September 30...
I need porters analysis on real estate project. Thank you
I need porters analysis on real estate project. Thank you
Please Answer Required# 4,5 and 6. If possible 7 too. Thank you. Please answer as soon...
Please Answer Required# 4,5 and 6. If possible 7 too. Thank you. Please answer as soon as possible. Required: #1. Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense. 1-Dec...
Please, I need a correct answer and clear explanation. Thank you, Part I – Explanation Q1...
Please, I need a correct answer and clear explanation. Thank you, Part I – Explanation Q1 Below are pairs of changes that affect elements of the accounting equation. Give an example of a transaction or economic event that reflects each: a. Asset increases, asset decreases b. Asset increases, liability increases c. Asset increases, shareholders’ equity increases d. Asset increases, revenue increases e. Liability decreases, asset decreases f. Asset decreases, expense increases g. Liability decreases, revenue increases h. Asset decreases, shareholders’...
Please, I need a correct answer and clear explanation. Thank you, The Retained Earnings account has...
Please, I need a correct answer and clear explanation. Thank you, The Retained Earnings account has a credit balance and credit entries are used to record increases in this account. Why do expense accounts, which are transferred to Retained Earnings when they are closed, have debit balances? Why are debit entries used to record increases in these accounts?
Hi all, Can someone please answer this question with all steps! Thank you! As a result...
Hi all, Can someone please answer this question with all steps! Thank you! As a result of improvements in product engineering, United Automation is able to sell one of its two milling machines. Both machines perform the same function but differ in age. The newer machine could be sold today for $69,500. Its operating costs are $22,600 a year, but in five years the machine will require a $18,700 overhaul. Thereafter operating costs will be $31,300 until the machine is...
Please write a different and clear answer not the common ones found on other websites. Thank...
Please write a different and clear answer not the common ones found on other websites. Thank you 1) a. What are all the transversions that can be made starting with the codon CGG? b. Which of these transversions will be missense? Can you be sure? 2) In mismatch repair in E. coli, only a mismatch in the newly synthesized strand is corrected. How is E. coli able to recognize the newly synthesized strand? Why does this ability make biological sense?...
Please answer questions 6 - 10. Thank you. 6. What are the three major market indexes?...
Please answer questions 6 - 10. Thank you. 6. What are the three major market indexes? 7. What is the difference between options and future contracts? 8. What determines the option price? 9. What is the difference between primary and secondary market for security sales? 10. What are market order, limit order, and stop order? Explain each one.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT