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Fundamentals of Financial Manageme...

14th Edition
Eugene F. Brigham + 1 other
ISBN: 9781285867977

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BuyFindarrow_forward

Fundamentals of Financial Manageme...

14th Edition
Eugene F. Brigham + 1 other
ISBN: 9781285867977
Textbook Problem

CONVERTIBLES Petersen Securities recently issued convertible bonds with a $1,000 par value. The bonds have a conversion price of $40 per share. What is the bonds’ conversion ratio, CR?

Summary Introduction

To Determine: The conversion ratio of the bond.

Introduction: Conversion ratio is a condition in an organization's prospectus that states the number of shares of common stock a bondholder of convertible preferred stock will get after exercising the conversion establishment.

Explanation

Determine the conversion ratio of the bond

ConversionRatio=[ParValueConversion</

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