Multiple Choice
A firm has an outstanding bond with a $1,000 par value that is convertible at $40 per share of common stock. If the current market value of common stock per share is $45, the conversion value of the bond is ________.
A) $880
B) $1,000
C) $1,125
D) $1,200
Correct Answer:
Verified
Correct Answer:
Verified
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