The Conversion Ratio Is Defined as The

question 47

Multiple Choice

The conversion ratio is defined as the:

• A) Market value of a bond divided by the face value of the bond.
• B) Market value of a bond divided by the conversion price.
• C) Increase in the market value that would be realized if a bond were exchanged for stock.
• D) Number of shares of stock that can be received in exchange for one bond.
• E) Dollar amount of a bond's par value that is exchangeable for one share of stock.

---

Definitions:

Causal Attribution Theory

A concept in social psychology that examines how people determine the causes of behavior or events, attributing them to internal dispositions or external situations.

Partner Uncertainty

The inability to predict the behavior, thoughts, or feelings of another person.

Halo Effect

The tendency to extend an overall impression of a person, object, or institution based on one characteristic, either positive or negative.

Consistency Effect

The tendency for people to seek, interpret, and remember information that confirms their preexisting beliefs and attitudes.