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What price must the common stock reach

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Question - Jackson Metals, Inc., issued a $1,000 convertible corporate bond. Each bond is convertible to 22 shares of the firm's common stock.

a. What price must the common stock reach before investors would consider converting their bond to common stock?

b. If you owned a bond in Jackson Metals, would you convert your bond to common stock if the stock's price did reach the conversion price? Explain your answer.

Reference no: EM133025830

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