C is corrent because the book value method is the method used to convert preferred shares into ordinary shares.
A is incorrect because the fair value method is an unacceptable method for preferred stock conversion.
B is incorrect because the cost plus differential method is not a conversion method under IFRS or US GAAP.
D is incorrect because the market value method is unacceptable under IFRS, although it may be used for US GAAP conversions.
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