Solved: Conversion value of the convertible issue, Accounting Basics

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Conversion value of the convertible issue

Question: The conversion price of CRX's convertible ($1,000 par) subordinated debentures is $40 and the present market price of CRX common stock is $48.

Determine the present conversion value of the convertible issue. (First determine conversion ratio).

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Accounting Basics: Conversion value of the convertible issue

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