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

Question 45

Multiple Choice

The holders of Mikayla Corporation's bonds with a face value of $1,000 each can exchange a bond for 20 shares of stock.The stock is selling for $49.40 a share.What is the conversion premium?


A) 0 percent
B) 1.33 percent
C) 1.21 percent
D) −1.33 percent
E) 1.67 percent

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