Pii: S1059-0560(99)00024-6
نویسندگان
چکیده
Dividend enhanced convertible stocks (DECS) represent redeemable convertible preferred stocks mandated to convert in four years. DECS are designed to meet the needs of incomeoriented investors, who give up some upside capital appreciation potential over four years in exchange for enhanced preferred dividends. A simple contingent claims pricing model for the valuation of DECS is presented in this article. The application of the model to Masco Tech Inc. has shown that, on average, its DECS issue was slightly overpriced during the sample period. 1999 Elsevier Science Inc. All rights reserved. JEL classification: G13
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تاریخ انتشار 1999