What Would the Conversion Price and Conversion Ratio Be If

question 15

Multiple Choice

What would the conversion price and conversion ratio be if Xenron had a 3 for 1 stock split?

• A) $22; 25
• B) $28.57; 35
• C) $9.52; 105
• D) $7.33; 75

---

Definitions:

Financial Analysis

Financial Analysis involves evaluating businesses, projects, budgets, and other finance-related entities to determine their performance and suitability.

Alternative Accounting Policies

Different methods and practices that a company can choose from to record its transactions and prepare its financial statements under the framework of accounting standards.

Other Comprehensive Income

Those revenues, expenses, gains, and losses under both GAAP and IFRS that are excluded from net income on the income statement.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or under-valued.