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    Convertible debentures conversion price to common stock: B&O

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    B&O Railroad's convertible debentures were issued at their $1,000 par value in 1998. At any time prior to maturity on February 1, 2018, a debenture holder can exchange a bond for 25 shares of common stock. What is the conversion price, Pc?

    $25
    $1,000
    $40
    $1,025
    $50

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    https://brainmass.com/business/convertible-bonds/convertible-debentures-conversion-price-to-common-stock-b-o-192752

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    B&O Railroad's convertible debentures were issued at their $1,000 par value in ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the conversion price, Pc.

    $2.19