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Conversion Price Formula

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Conversion Price is the price at which the convertible bond or preferred share can be converted into common stock. Check FAQs

CP = \frac{PV}{CR}

CP - Conversion Price?PV - Par Value?CR - Conversion Ratio?

Conversion Price Example

With values

With units

Only example

Here is how the Conversion Price equation looks like with Values.

Here is how the Conversion Price equation looks like with Units.

Here is how the Conversion Price equation looks like.

6 = \frac{30}{5}

6 = \frac{30}{5}

6 = \frac{30}{5}

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Conversion Price Solution

Follow our step by step solution on how to calculate Conversion Price?

FIRST Step Consider the formula

CP = \frac{PV}{CR}

Next Step Substitute values of Variables

∴

CP = \frac{30}{5}

Next Step Prepare to Evaluate

∴

CP = \frac{30}{5}

LAST Step Evaluate

∴

CP = 6

Conversion Price Formula Elements

Variables

Conversion Price

Conversion Price is the price at which the convertible bond or preferred share can be converted into common stock.

Symbol: CP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Conversion Price

Par Value

Par Value is the face value of the convertible bond or preferred share.

Symbol: PV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Par Value

Conversion Ratio

Conversion Ratio refers to the number of shares an investor receives for each convertible bond or preferred share they own when they choose to convert it into common stock.

Symbol: CR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Conversion Ratio

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How to Evaluate Conversion Price?

Conversion Price evaluator uses Conversion Price = Par Value/Conversion Ratio to evaluate the Conversion Price, The Conversion Price is the predetermined price at which the security can be converted into a set number of shares of common stock. Conversion Price is denoted by CP symbol.

How to evaluate Conversion Price using this online evaluator? To use this online evaluator for Conversion Price, enter Par Value (PV) & Conversion Ratio (CR) and hit the calculate button.

FAQs on Conversion Price

What is the formula to find Conversion Price?

The formula of Conversion Price is expressed as Conversion Price = Par Value/Conversion Ratio. Here is an example- 6 = 30/5.

How to calculate Conversion Price?

With Par Value (PV) & Conversion Ratio (CR) we can find Conversion Price using the formula - Conversion Price = Par Value/Conversion Ratio.

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Conversion Price Formula

Conversion Price Example

Conversion Price Solution

Conversion Price Formula Elements

Other formulas in Asset Management category

How to Evaluate Conversion Price?

FAQs on Conversion Price

Variable Name