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

Question 4

Multiple Choice

The holders of Xenron Corporation's bond with a face value of €1,000 can exchange that bond for 35 shares of equity.The equity is selling for €22.00.What is the conversion price?


A) €22.00
B) €28.57
C) €35.00
D) €1,000.00
E) No conversion premium is given.

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