It is the number that tells how many common stocks (or preference stocks) will the bondholder receive at the time of conversion. It is usually constant over the life of the security and protect against losses caused by stock splits or large stock dividends.

         Conversion ratio = Number of shares per bond if the bond is converted

Posted Date: 9/8/2012 6:02:24 AM | Location : United States

Ask an Expert

Related Discussions:- Conversion ratio, Assignment Help, Ask Question on Conversion ratio, Get Answer, Expert's Help, Conversion ratio Discussions

Write discussion on Conversion ratio
Your posts are moderated

Write your message here..

Related Questions

Financial Management, BigGardens Ltd (BigGardens) is a private company that... BigGardens Ltd (BigGardens) is a private company that owns and operates a chain of garden centres in the Bristol area. The company has expanded rapidly over recent years, opening

Capital Structure and firm finanacial performance, How do I do an introduct... How do I do an introductory writing on this topic tto help. Include all salient issues?

Statement of cash flows, Statement of Cash Flows A formal statement of ... Statement of Cash Flows A formal statement of the cash received and disbursed through an organization. The statement of cash flows is separate into three sections that are inve

Cost of Capital, The Nu-Nu Brothers Inc. (NNBI) has the following capital s... The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equity 60% NNBI''s expected net income t

What is return oncapital employed - performance ratios, What is Performanc... What is Performance ratios ROCE Return oncapital employed (ROCE)= (Profit before interest and tax (PBIT) / Capital employed) * 100% ROCE measures profitability and illu

Answer, The standard cost of chemical mixture ~ PQ’ is as follows: 40% of m... The standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticipated in

Evaluate the firms present market, For the purpose of the assignment, ASSUM... For the purpose of the assignment, ASSUME that you are the most senior financial officer in the firm, and has responsibility for treasury. In its financial advisory capacity, you h

How are the hibor, Q. How are the HIBOR, HSI and HSI futures related? T... Q. How are the HIBOR, HSI and HSI futures related? The HIBOR and HSI are contrariwise related. So futures on HIBOR and HSI are as well inversely related. Display

Operating cycle, discuss the applicability operating cycle considering broi... discuss the applicability operating cycle considering broilers in uganda?

Price-yield relationship of a callable bond, The price-yield relation... The price-yield relationship of a non-callable or a non-putable bond is convex because price and yield are inversely proportional. Figure 1 shows the price-yield