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Hello sir part c q no 84 bpp.
The market value of convertible loan stock is given in the question. Why do we need to calculate it again. Price of each share should be at least 110/20=5.5 before conversion takes place isn’t it sir ? according to the given MV.You asked this earlier, and I answered you
“The current market value is based on investors current expectations.
The question is asking what will happen to the market value in 2 months time – in 2 months time they will know for certain what the value of the shares is and therefore will decide for certain whether to convert or not.”
Again – part (c) is not asking for the current market value (we know that). They are asking for the value in 2 months time.
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