If a share of preferred stock has a $10 par value, and the stock has a 2:1 conversion ratio, then the conversion price would be $5.

Name: If a share of preferred stock has a $10 par value, and the stock has a 2:1 conversion ratio, then the conversion price would be $5.
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Quizplus · Accepted Answer

The conversion price is calculated by dividing the par value of the preferred stock by the conversion ratio, so $10 par value divided by 2:1 conversion ratio equals $5 conversion price.

If a Share of Preferred Stock Has a $10 Par