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    Fundamentals of Corporate Finance Study Set 14
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    Exam 15: Debt Financing
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    A Bond Has a Face Value of $10,000 and a Conversion
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A Bond Has a Face Value of $10,000 and a Conversion

Question 11

Question 11

Multiple Choice

A bond has a face value of $10,000 and a conversion ratio of 530. The stock is currently trading at $16.50. What is the conversion price?


A) $7.55
B) $16.50
C) $18.87
D) $53.00

Correct Answer:

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