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Supreme Industries issues the following announcement to holders of an issue of callable, convertible notes:
"Prior to the close of business on May 17, 2008, holders may convert their Notes into shares of Supreme Industries common stock at 28.45 shares of Supreme Industries common stock per $1000 principal amount of the Notes. Cash will be paid in lieu of fractional shares. On April 16, 2008, the last reported sale price of Supreme Industries common stock on the NYSE was $22.51 per share."

If on May 17, Supreme Industries is trading as $24.80, what is the value of common stock a holder of a $1,000 note would receive?

▸ $871.70

▸ $787.51

▸ $868.00

▸ $791.21
Textbook 
Fundamentals of Corporate Finance
Edition: 2nd
Authors:
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