The Conversion Ratio Is Defined as The

Multiple Choice

The conversion ratio is defined as the:

A) Market value of a bond divided by the face value of the bond.
B) Market value of a bond divided by the conversion price.
C) Increase in the market value that would be realized if a bond were exchanged for stock.
D) Number of shares of stock that can be received in exchange for one bond.
E) Dollar amount of a bond's par value that is exchangeable for one share of stock.