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From Kaplan revision kit question Daron part b: at the 100$ issue price the effective conversion price is 100/60 or 167 centos. How it is calculated? and further: maximum capital gains on conversion of 33 centos per share? also how was calculated? Thanks.
Maybe you are using a different edition of the Kaplan kit than the one that I have in front of me.
The question called Daron that I am looking at has no part (b) (nor any of the calculations that you mention).If it is a past exam question then please give the exam date – if it is December 95, then there was no part (b) in the original exam question either!
Otherwise can you check that it really is Daron that you are asking about.Thank you, John, for prompt response. I am using Kaplan exam kit 1 sept 2014-31 aug 2015. The question 3 Daron and there is also part c.
I am really sorry, but my edition is an earlier one and although it has the question Daron, there is no part (b) or part (c) (it is printed exactly as the original exam question).
I can only assume that for some reason Kaplan have decided to amend it and add some bits, but without seeing what they have done it is impossible for me to answer your problem.
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