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irakobra [83]
3 years ago
7

A corporation issues $50 par convertible preferred stock, convertible at $20 per share, when the market price of the common is c

urrently $10. Which statement is TRUE?
A. The conversion ratio is 10:1
B. The conversion ratio is 5:1
C. The conversion ratio is 2.5:1
D. The conversion ratio is 2:1
Business
2 answers:
Marysya12 [62]3 years ago
8 0

Answer:

B. The conversion ratio is 5:1

Explanation:

The conversion ratio is Par Value / Conversion Price.

$100 Par / $20 Conversion Price = 5:1 Conversion Ratio.

blagie [28]3 years ago
7 0

Answer:

C) The conversion ratio is 2.5:1

Explanation:

The conversion ratio is:

Par Value / Conversion Price.

Hence,

$50 Par / $20 Conversion Price = 2:5:1

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A mirror should be centered on a wall. The mirror is 4 feet wide and the wall is 20 feet wide. Which equation helps determine th
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Answer:

A).  x + 4 + x = 20

<u>Multiple-choices</u>

A).  x + 4 + x = 20

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