Evaluate Equity Features
Securities Industry Essentials SIE · Flashcards · Application
SECURITIES INDUSTRY ESSENTIALS SIE · FLASHCARDS
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QUESTION
Find the conversion price for
$
1,000
\$1{,}000
$1
,
000
par and a
20
20
20
-to-
1
1
1
conversion ratio.
QUESTION
Identify the formula for total votes under cumulative voting for 100 shares and 3 seats.
QUESTION
Calculate conversion parity if the ratio is
20
20
20
and common is $48.
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ANSWER
20
×
$
48
=
$
960
20 \times \$48 = \$960
20
×
$48
=
$960
parity value. Parity is computed by multiplying the conversion ratio by the current common stock price to evaluate conversion value.
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