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  3. Study Set
    Principles of Managerial Finance
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    Exam 17: Hybrid and Derivative Securities
  5. Question
    When the Market Price of the Common Stock Exceeds the Conversion
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When the Market Price of the Common Stock Exceeds the Conversion

Question 169

Question 169

True/False

When the market price of the common stock exceeds the conversion price, the conversion (or stock) value exceeds the par value of the convertible security.

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