Co-Op Ltd Issues Converting Preference Shares with a Face Value

question 55

Multiple Choice

Co-op Ltd issues converting preference shares with a face value of $15,which convert to ordinary shares on 30 June.The conversion ratio is determined by dividing the face value of the preference share by an amount equal to the price of Co-op ordinary shares on 30 June,less 10 per cent.If the market value of ordinary shares on the conversion is $5.35,at what value will each preference share convert into ordinary shares?

• A)$15.00
• B)$16.67
• C)$5.35
• D)$13.50

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Definitions:

Forebrain

The forebrain is the largest part of the brain, responsible for a variety of functions including motor control, emotion, reasoning, and learning.

Cerebellum

A region of the brain that plays an important role in motor control, and also in some cognitive functions like attention and language.

Cerebral Cortex

The outer layer of the cerebrum, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Right Hemisphere

The right side of the brain, which is typically associated with creativity, spatial ability, and the processing of visual and auditory information.