The holders of Mikayla Corporation's bond with a face value of $1,000 can exchange that bond for 30 shares of stock. The stock is selling for $25.00. What is the conversion price?
A) $25.00
B) $33.33
C) $35.00
D) $1,000.00

Question

Quizplus · Accepted Answer

The conversion price is calculated by dividing the bond's face value by the number of shares that can be obtained through conversion. Here, it's $1,000 / 30 shares = $33.33.

The Holders of Mikayla Corporation's Bond with a Face Value