A firm has an outstanding bond with a $1,000 par value that is convertible into 50 shares of common stock. The bond's conversion ratio is ___________ .

Name: A firm has an outstanding bond with a $1,000 par value that is convertible into 50 shares of common stock. The bond's conversion ratio is ___________ .
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Question

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The conversion ratio is the number of shares that a bondholder can receive upon converting a bond into stock. Here, the bond is convertible into 50 shares, so the conversion ratio is 50.

A Firm Has an Outstanding Bond with a $1,000 Par