MultipleChoice
Acompanyhas 8% convertible bonds in issue. The bonds are convertible in 3 years time at a ratio of 20 ordinary shares per $100 nominal value bond.
Each share:
* has a current market value of $5.60
* is expected to grow at 5% each year
What is the expected conversion valueof each$100nominal value bondin 3 years' time?
OptionsCorrectText
An aerospace company is planning to diversify into car manufacturing.
Relevant data:
What is the the cost of equity to be used in the WACC for the project appraisal?
Give your answer in percentage, as a whole number.
? %
MultipleChoice
Two companies that operate in the same industry have different Price/Earnings (P/E)ratios as follows:
Which of the following is the most likely explanation of the different P/E ratios?
Options