Question $12$

Question ID: $1544660$

PDQ Corporation has a $6\mathrm{.}25\%$ $$100$ par value convertible preferred stock $($conversion ratio of $4)$ outstanding. The stock has an antidilution covenant. If PDQ declares a $10\%$ stock dividend, the antidilution covenant will adjust

A$)$ the conversion price to approximately $$22\mathrm{.}73$

B$)$ the par to $$90$

C$)$ the conversion price to approximately $$27\mathrm{.}50$

D$)$ D$)$ the par to $$110$