The conversion ratio is defined as the:
A) Market value of a bond divided by the face value of the bond.
B) Market value of a bond divided by the conversion price.
C) Increase in the market value that would be realized if a bond were exchanged for stock.
D) Number of shares of stock that can be received in exchange for one bond.
E) Dollar amount of a bond's par value that is exchangeable for one share of stock.
Correct Answer:
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