TSX:CUS.DB.D - Post by User
Comment by
HAWK37on Apr 07, 2015 12:22am
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Post# 23602880
RE:RE:RE:Having trouble figuring out what would be a fair share price
RE:RE:RE:Having trouble figuring out what would be a fair share price
Adam, well for starters, this isn't a government bond backed by taxpayers. You have to adjust for (considerable) risk. Use 6.5%, which is Canexus cost of debt (the convertibles pay 6.5%). Using that, according to your formula, the IV is $653 million and the value of the equity is zero. hmmm. DS