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Diamond Drill Has 150,000 Shares of Stock Outstanding at a Market

Question 52

Multiple Choice

Diamond Drill has 150,000 shares of stock outstanding at a market price of $46 a share.The holder of a $1,000 face value bond can exchange the bond at any time for 25 shares of stock.What is the conversion price?


A) $40
B) $46
C) $43
D) $25
E) $20

Correct Answer:

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