Diamond Drill Inc

Multiple Choice

Diamond Drill Inc. has 150,000 shares and 15,000 warrants outstanding. A warrant holder can purchase a new share of stock for five warrants and $5.00 per warrant. The stock is currently selling for $27 per share.
-Refer to the above scenario.The holder of a $1,000 face value bond can exchange the bond any time for 25 shares of stock.The conversion ratio is:

A) 25.
B) 40.
C) 100.
D) Depends on the current market price of the bond.
E) None of the above.