A measure of the number of years it takes for an investor to recover the initial CONVERSION PREMIUM paid when purchasing a CONVERTIBLE BOND, after accounting for the fact that the investor may purchase more COMMON STOCK than represented by the CONVERSION RATIO. Adjusted breakeven is typically computed as: where Convprem is the conversion premium, C is the COUPON, PCB is the price of the convertible bond, S is the price of the common stock, and DPS is DIVIDENDS per share. See also EQUIVALENT BREAKEVEN, SIMPLE BREAKEVEN.ADJUSTMENTBONDABOND issued as a RECAPITALIZATION instrument by a company in FINANCIAL DISTRESS, often as an INCOMEBOND that only pays investors COUPON interest as earnings permit.
What is ADJUSTED BREAKEVEN?
Featuring Black’s Law Dictionary
Nothing implied or stated on this page should be construed to be legal, tax, or professional advice. The Law Dictionary is not a law firm and this page should not be interpreted as creating an attorney-client or legal adviser relationship. For questions regarding your specific situation, please consult a qualified attorney.
- What Is A Police Welfare Check?
- Best Way to Find Someone in Jail for Free
- How to Transfer a Car Title When The Owner Is Deceased
- How To Find A Name & Address Using A License Plate Number
- Best Way to Write a Professional Letter to a Judge
- What Can You Do At 18 Legally?
- How To Find An Inmate’s Release Date
- Why Do Policemen Touch Your Tail Light When They Pull You Over?
- Signing a Letter on Someone Else’s Behalf
- How Do You Look up License Plate Numbers?