The conversion ratio is considered to be a(n)
A) activity ratio.
B) liquidity ratio.
C) profitability ratio.
D) leverage ratio.
E) cash ratio.

Question

Quizplus · Accepted Answer

The conversion ratio is a type of activity ratio that measures the number of convertible securities that can be exchanged for common stock. It is used to determine the potential dilution of earnings per share for companies that have issued convertible securities.

The Conversion Ratio Is Considered to Be A(n)