What is the minimum conversion ration

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Reference no: EM131178371

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Call Date: July 1, 2008

Call Price: $104.32

Maturity: July 1, 2015

A firm issues the convertible debt shown above. The price of stock in this company on July 1, 2008 is $28.20. What is the minimum conversion ration that would make a bondholder prefer to convert rather than accept the call price?

A. 41 shares per $1000 principal

B. 35 hares per $1000 principal

C. 37 hares per $1000 principal

D. 32 hares per $1000 principal

Reference no: EM131178371

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