认股权证与可转换债券探讨t 2.ppt

《认股权证与可转换债券探讨t 2.ppt》由会员上传分享，免费在线阅读，更多相关内容在PPT专区-天天文库。

1、ExecutiveSummaryThischapterdescribesthebasicfeaturesofwarrantsandconvertibles.Theimportantquestionsare:Howcanwarrantsandconvertiblesbevalued?Whatimpactdowarrantsandconvertibleshaveonfirmvalue?Whatarethedifferencesbetweenwarrants,convertiblesandcalloptions?Underwhatcircumstances

2、arewarrantsandconvertiblesconvertedintocommonstock?ChapterOutline24.1Warrants24.2TheDifferencebetweenWarrantsandCallOptions24.3WarrantPricingandtheBlack-ScholesModel(Advanced)24.4ConvertibleBonds24.5TheValueofConvertibleBonds24.6ReasonsforIssuingWarrantsandConvertibles24.7Whyar

3、eWarrantsandConvertiblesIssued24.8ConversionPolicy24.9SummaryandConclusions24.1WarrantsWarrantsarecalloptionsthatgivetheholdertheright,butnottheobligation,tobuysharesofcommonstockdirectlyfromacompanyatafixedpriceforagivenperiodoftime.Warrantstendtohavelongermaturityperiodsthane

4、xchangetradedoptions.Warrantsaregenerallyissuedwithprivatelyplacedbondsasan“equitykicker”.Warrantsarealsocombinedwithnewissuesofcommonstockandpreferredstock,giventoinvestmentbankersascompensationforunderwritingservices.Inthiscase,theyareoftenreferredtoasaGreenShoeOption.24.1War

5、rantsThesamefactorsthataffectcalloptionvalueaffectwarrantvalueinthesameways.Stockprice+Exerciseprice–Interestrate+Volatilityinthestockprice+Expirationdate+Dividends–24.2TheDifferenceBetweenWarrantsandCallOptionsWhenawarrantisexercised,afirmmustissuenewsharesofstock.Thiscanhavet

6、heeffectofdilutingtheclaimsofexistingshareholders.DilutionExampleImaginethatMr.ArmstrongandMr.LeMondareshareholdersinafirmwhoseonlyassetis10ouncesofgold.Whentheyincorporated,eachmancontributed5ouncesofgold,thenvaluedat$300perounce.Theyprinteduptwostockcertificates,andnamedthefi

7、rmLegStrong,Inc..SupposethatMr.ArmstrongdecidestosellMr.MercxacalloptionissuedonMr.Armstrong’sshare.ThecallgivesMr.MercxtheoptiontobuyMr.Armstong’ssharefor$1,500.Ifthiscallfinishesin-the-money,Mr.Mercxwillexercise,Mr.Armstrongwilltenderhisshare.Nothingwillchangeforthefirmexcept

8、thenamesoftheshareholders.DilutionExampleSupposethatMr