Common Stock of Southern Airlines Currently Sells for $33, and Its

question 8

Multiple Choice

common stock of Southern Airlines currently sells for $33, and its 8% convertible debentures (issued at par, or $1,000) sell for $850 Each debenture can be converted into 25 shares of common stock at any time before 2025 What is the conversion value of the bond?

• A) $707.33
• B) $744.56
• C) $783.75
• D) $825.00
• E) $866.25

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