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Bill Owns Convertible Securities in Mercury Corp

Question 128

Multiple Choice

Bill owns convertible securities in Mercury Corp. If the conversion ratio for the convertible securities is 45, it means that:


A) Bill can convert 45% of the convertible securities that he owns for shares of common stock.
B) Bill can convert 45% of the convertible securities that he owns for shares of preferred stock.
C) Bill can exchange each convertible security that he owns for 45 shares of common stock.
D) Bill can liquidate each convertible security that he owns for $45.

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