ADJUSTED BREAKEVEN meaning in Law Dictionary

measure of the sheer number of many years it will take for a trader to recover the original CONVERSION PREMIUM compensated when purchasing a CONVERTIBLE BOND, after accounting when it comes to fact that the trader may buy more widespread STOCK than represented because of the CONVERSION PROPORTION. Adjusted breakeven is normally calculated as: in which Convprem could be the conversion advanced, C could be the COUPON, PCB could be the cost of the convertible bond, S could be the price of the common stock, and DPS is DIVIDENDS per share. See also COMPARABLE BREAKEVEN, EASY BREAKEVEN.ADJUSTMENTBONDABOND issued as a RECAPITALIZATION instrument by a business in FINANCIAL DISTRESS, frequently as an INCOMEBOND that only will pay people COUPON interest as earnings allow.