Price of Common Stock

Related BrainMass Solutions

• Equity Capital

  The price of the common stock should be: Price of the preferred stock / conversion ratio = $7 / 0.75 = $9.33 Thus, the lowest price of the company's common stock should be $9.33. 2.

• Calculating conversion or stock value of convertible bond.

  Conversion ratio=25 Market price of stock=$50 Conversion value=conversion ratio*market price=25*50=$1250 b. A $1,000-par-value bond that is convertible into 12.5 shares of common stock.

• Stock Conversion

  of the common stock.

• Would common stock be higher or lower than preferred stock?

  The preferred stock is sold at a higher price but pays a fixed dividend over the life of the preferred stock, whereas the common stock has a lower price and more volatility with the stock.

• Brisbane Company - Earnings per Share

  If the exercise price of stock options were $50 per share and the average market price of the common share were $40, what diluted EPS will be reported for 2006?

• Stock, Bond, Warrants

  of the common stock.

• Basic and Diluted EPS

  bonds, convertible into 75,000 shares of common stock $2,500,000 Stock options, exerciseable at the option price of $25 per share Average market price in 2000 of $30 per common share Total number of common shares available

• Convertible Bond and Convertible Preferred Stock

  b) What is the value of the bond based on the market price of the common stock? c) What is the value of the common stock based on the market price of the bond?

• WACC

  187244 WACC With the following information compute the WACC: Corporate tax rate 40%, before tax cost of debt - 12%, preferred stock price - $32, common stock price - $21, dividend growth rate - 4.7%, preferred stock yearly dividend - $5.00, common stock

• Analyzing the stockholders' equity section of the balance sh

  What was the average issue price per share (price for which the price was issued) of the common stock? e. Explain the difference between the average issue price and the market price of the common stock. f.