Chapter 16: Warrants and Convertible Securities
The following sections are included:
Introduction
Hybrid Securities
Warrants and Their Valuation
Convertible Bonds and Their Valuation
Cost of Capital for Convertibles and Impacts of Call and Conversion
Cost of capital for convertibles
Impacts of call and conversion
Beta Coefficients for Convertible Bonds
Earnings per Share (EPS) when Warrants and Convertibles are Issued
Summary
Appendix 16A — Market Value of Convertible Bond
Appendix 16B — Option Approach to Evaluating Bonds and Stocks