Any topic ( Writer’s Choice

Harmony, Inc. recently issued convertible debt that has five years to maturity. The conversion price on the debt is $30. If the bondholders were to convert their debt into equity, Harmony would have to issue 1,000,000 new shares. In conjunction with this debt issue, Harmony purchased a call option with an exercise price of $30 on 1,000,000 shares. Additionally, Harmony sold warrants on 300,000 shares of their stock with an exercise price of $45.

Please answer the following two questions:

Question #1. What is the purpose of Harmony purchasing the call option?

Question #2.  As an analyst, what range do you think that Harmonys price will fall within over the next five years? Why?

You can place an order similar to this with us. You are assured of an authentic custom paper delivered within the given deadline besides our 24/7 customer support all through.