Answer:
False
Explanation:
The formula to compute the conversion ratio is shown below:
Conversion ratio = Par value of convertible security ÷ conversion price
The conversion ratio is computed by dividing the par value of convertible security or bond by the conversion price. The example is presented below:
Example: The par value is $1,000 and the conversion price is $20, so the conversion ratio is 50
Hence, the given statement is false
