An investor owns a convertible debenture with a conversion price of $10. If a 10% stock dividend is paid on the company's common stock, which of the following is true?
A)The investor will receive 10 shares of the common stock.
B)The conversion price will be adjusted to $11.00.
C)The conversion price will be adjusted to $9.09.
D)The investor will receive 1 share of the common stock.
