Conversion value: Difference between revisions
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imported>Doug Williamson m (Added more space so that calculations are clearer) |
imported>Doug Williamson (Align presentation of formula with qualification material) |
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each convertible bond may be exchanged for 40 ordinary shares, | each convertible bond may be exchanged for 40 ordinary shares, | ||
Revision as of 15:29, 14 March 2015
Convertible bonds.
The total current market value of the ordinary shares (or other securities) for which each convertible bond may be exchanged (at the bondholder's option).
For example:
each convertible bond may be exchanged for 40 ordinary shares,
and the ordinary shares are currently trading in the market at £2 each,
then the conversion value
= 40 x £2
= £80.
