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The Holders of Mikayla Corporation's Bond with a Face Value

Question 15

Multiple Choice

The holders of Mikayla Corporation's bond with a face value of $1,000 can exchange that bond for 30 shares of stock. The stock is selling for $25.00. What is the conversion value of the bond?


A) $25
B) $40
C) $750
D) $1,000
E) No conversion premium is given.

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