The Number of Shares of Stock Received for Each Convertible

question 85

Multiple Choice

The number of shares of stock received for each convertible bond converted into stock is called the _______________.

• A) Conversion premium.
• B) Straight bond value.
• C) Conversion value.
• D) Conversion price.
• E) Conversion ratio.

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Definitions:

Labor-Intensive Commodities

Goods that require a higher proportion of labor in their production process compared to materials and capital.

Opportunity Cost

The value of the best alternative that must be forgone as a result of choosing a particular action or decision.

Law of Comparative Advantage

An economic principle stating that countries or individuals gain when they produce goods and services for which they have lower opportunity costs relative to others.

Low Opportunity Cost

A situation where the cost of forgoing the next best alternative is relatively minimal.