Hudson Bay Fishing Corporation has issued bonds that can be converted into common shares when the share price is $50.The current market price of the stock is $35.The bond has a face value of $1,000 and currently sells for $975.What is the conversion ratio for this bond?
A)20
B)29
C)24
D)28

Question

Quizplus · Accepted Answer

The conversion ratio is calculated by dividing the bond's face value by the conversion price: $1,000 / $50 = 20.

Hudson Bay Fishing Corporation Has Issued Bonds That Can Be