The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

EQUIVALENT BREAKEVEN Definition & Legal Meaning

Definition & Citations:

A measure of the number of years it takes for an investor to recover the initial CONVERSION PREMIUM paid in acquiring a CONVERTIBLE BOND, typically computed as: where Convprem is the conversion premium, C is the COUPON, Convratio is the CONVERSION RATIO, and DPS is DIVIDENDS per share. See also ADJUSTED BREAKEVEN, SIMPLE BREAKEVEN.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.