Diamond Drill Inc.has 150,000 shares and 15,000 warrants outstanding.A warrant holder can purchase a new share of equity for five warrants and €5.00 per warrant.The equity 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 equity.The conversion ratio is:
A) 25.
B) 40.
C) 100.
D) Depends on the current market price of the bond.
E) None of the above.
Correct Answer:
Verified
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