The Conversion Ratio Is the

question 40

Multiple Choice

The conversion ratio is the

• A)price at which a convertible security is exchanged into common stock.
• B)ratio of conversion value to market value of a convertible security.
• C)number of shares of common stock into which the convertible may be converted.
• D)ratio of the conversion premium to market value of a convertible security.

---

Definitions:

Planning Budget

A budget created using the expected output and efficiency at the beginning of the budget period, without any adjustments for actual activity levels.

Vocational School

An educational institution that provides specialized instruction and training in a particular career or technical field.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting in variable cost situations.

Activity Variances

Discrepancies between planned or standard costs to perform an activity and the actual costs incurred.