The Conversion Price of CRX's Convertible ($1,000 Par) Subordinated Debentures

question 67

Multiple Choice

The conversion price of CRX's convertible ($1,000 par) subordinated debentures is $40, and the present market price of CRX common stock is $48. Determine the present conversion value of the convertible issue.

• A) $1,000
• B) $1,200
• C) $833
• D) $1,680

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Definitions:

Quantity Demanded

The total amount of a goods or services that consumers are willing and able to purchase at a given price level at a specific time.

Demand

Demand in economics refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a certain period.

Increase

A rise or growth in quantity, size, intensity, or another measure.

Demand Curve

A chart that illustrates the correlation between a product's price and the amount of it consumers want to buy, usually depicted as a line sloping downwards towards the right.