Multiple Choice
Suppose a firm just issued a $1,000 par value convertible bond. Its conversion ratio is 30 and the stock currently sells for $25 per share. Would it make better financial sense to hold onto the bond or convert it?
A) hold onto the bond
B) convert the bond
C) can't tell from this information
D) convert the bond after two more dividend payments
Correct Answer:
Verified
Correct Answer:
Verified
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