A firm has an outstanding bond with a $1,000 par value that is convertible into 50 shares of common stock. The bond's conversion ratio is ________.
A) 20
B) 25
C) 50
D) 100

Name: A firm has an outstanding bond with a $1,000 par value that is convertible into 50 shares of common stock. The bond's conversion ratio is ________. A) 20 B) 25 C) 50 D) 100
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Question

Quizplus · Accepted Answer

The bond is convertible into 50 shares of common stock, which means the conversion ratio is 50.

A Firm Has an Outstanding Bond with a $1,000 Par