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ZEN Inc. is financed by 3 million shares of common stock and by $5 million face...

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Finance

ZEN Inc. is financed by 3 millionshares of common stock and by $5 million face value of 8%convertible debt maturing in 2026. Each bond has a face value of$1,000 and a conversion ratio of 200. What is the value of eachconvertible bond at maturity if ZEN’s net assets are:

  1. $30 million?
  2. $4 million?
  3. $20 million?
  4. $5 million?

Answer & Explanation Solved by verified expert
3.6 Ratings (509 Votes)
It was given that each Bond will be converted into 200 Shares and we have Noof bond co having 5000000 10005000 bonds Equal noof share for 5000 Bonds 1000000 Shares 5000 Bonds 200 Shares Bond    See Answer
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