The bonds of VDM, Inc. are convertible into shares of the firm's common stock at $50 per share. The current price of the common stock is $45 per share. The bonds have a $1,000 par value and currently sell for $950 apiece. What is the conversion ratio of these bonds?
A) 20
B) 22
C) 25
D) 45
E) 50
Correct Answer:
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