Diamond Drill Inc. has 150,000 shares and 15,000 warrants outstanding. A warrant holder can purchase a new share of stock for five warrants and $5.00 per warrant. The stock is currently selling for $27 per share. The holder of a $1,000 face value bond can exchange the bond any time for 25 shares of stock. The conversion ratio is:
A) 25.
B) 40.
C) 100.
D) Depends on the current market price of the bond.
E) None of these.
Correct Answer:
Verified
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