The Holders of Xenron Corporation's Bond with a Face Value

question 53

Multiple Choice

The holders of Xenron Corporation's bond with a face value of $1,000 can exchange that bond for 35 shares of stock. The stock is selling for $22.00. What would the conversion price and conversion ratio be if Xenron had a 3 for 1 stock split?

• A) $7.33; 75
• B) $9.52; 105
• C) $22.00; 25
• D) $28.57; 35
• E) None of these.

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