Conversion value: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Align presentation of formula with qualification material) |
imported>Doug Williamson (Standardise appearance of page.) |
||
| Line 4: | Line 4: | ||
''' | '''Example''' | ||
each | Convertible bonds are in issue, each of which may be exchanged for 40 ordinary shares. | ||
The ordinary shares are currently trading in the market at £2 each. | |||
The conversion value is given by: | |||
= 40 x £2 | = 40 x £2 | ||
Revision as of 13:14, 15 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).
Example
Convertible bonds are in issue, each of which may be exchanged for 40 ordinary shares.
The ordinary shares are currently trading in the market at £2 each.
The conversion value is given by:
= 40 x £2
= £80.
