In the October 26, 1992, prospectus summary of the Staples 5 convertible subordinated debentures due 1999, the offering stated Convertible into Common Stock at a conversion price of $45 per share If the par value is $1 000, what is the conversion ratio ...

Let us rearrange the equation for conversion price to s ...

In the October 26, 1992, prospectus summary of the Staples 5% convertible subordinated debentures due 1999, the

Question:

In the October 26, 1992, prospectus summary of the Staples 5% convertible subordinated due 1999, the offering stated: “Convertible into at a conversion price of $45 per share . . .” If the is $1.000, what is the conversion ratio? Debentures
Debenture DefinitionDebentures are corporate loan instruments secured against the promise by the issuer to pay interest and principal. The holder of the debenture is promised to be paid a periodic interest and principal at the term. Companies who... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...