Multiple Choice
A firm issues the convertible debt shown above.The price of stock in this company on July 1,2008 is $28.20.What is the minimum conversion ratio that would make a bondholder prefer to convert rather than accept the call price?
A) 32 shares per $1000 principal amount
B) 35 shares per $1000 principal amount
C) 37 shares per $1000 principal amount
D) 41 shares per $1000 principal amount
E) 45 shares per $1000 principal amount
Correct Answer:
Verified
Correct Answer:
Verified
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