What Would the Conversion Price and Conversion Ratio Be If

question 24

Multiple Choice

What would the conversion price and conversion ratio be if Mikayla had a 4 for 1 stock split?

• A) $5.33; 75
• B) $8.33; 120
• C) $22.00; 125
• D) $27.50; 135

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Definitions:

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of that good by all firms in the industry.

Diminishing Returns

A principle stating that as one factor of production increases while others remain fixed, there will eventually be a decrease in the incremental output gained.

Normal Rate

A standard or usual level of financial return on investment or interest on loans.

Supply

The total amount of a product or service that is available to consumers at a given price over a specific period.