Koppen Ltd has just raised $1 billion by an issue of converting preference shares on the following terms:
An investor,W.Street,currently owns 500 000 Koppen Ltd CPS.If the ordinary share price immediately prior to conversion is expected to be $2.00 per share,calculate the number of ordinary shares that W.Street expects to receive on conversion.
A)625 000 ordinary shares.
B)6 250 000 ordinary shares.
C)12 500 000 ordinary shares.
D)1 250 000 ordinary shares.

Question

Koppen Ltd has just raised $1 billion by an issue of converting preference shares on the following terms: 
An investor,W.Street,currently owns 500 000 Koppen Ltd CPS.If the ordinary share price immediately prior to conversion is expected to be $2.00 per share,calculate the number of ordinary shares that W.Street expects to receive on conversion.
A)625 000 ordinary shares. 
B)6 250 000 ordinary shares. 
C)12 500 000 ordinary shares. 
D)1 250 000 ordinary shares.

Quizplus · Accepted Answer

The Answer of Koppen Ltd has just raised $1 billion by an issue of converting preference shares on the following terms: 
An investor,W.Street,currently owns 500 000 Koppen Ltd CPS.If the ordinary share price immediately prior to conversion is expected to be $2.00 per share,calculate the number of ordinary shares that W.Street expects to receive on conversion.
A)625 000 ordinary shares. 
B)6 250 000 ordinary shares. 
C)12 500 000 ordinary shares. 
D)1 250 000 ordinary shares.

Koppen Ltd Has Just Raised $1 Billion by an Issue