When convertible bonds are first issued
I. the conversion price of the stock is higher than the market price.
II. the market price of the stock is higher than the conversion price.
III. the coupon rate is higher than if the bond were not convertible.
IV. the coupon rate is lower than if the bond were not convertible.
A) I and III only
B) II and IV only
C) I and IV only
D) II and III only
Answer: C
You might also like to view...
The components in point-factor method of job evaluation are usually referred to as ______ factors.
A. compensable B. noncompensable C. pay D. rate
The supplies account has a balance of $1,000 on January 1. During January, the company purchased $25,000 of supplies on account and the liability was appropriately recorded. A count of supplies at the end of January indicates a balance of $3,000. Which one of the following is a correct amount to be reported on the company's financial statements for the month ending January 31?
A) Supplies expense - $23,000 B) Supplies on hand - $1,000 C) Accounts payable - $28,000 D) Supplies expense - $26,000
Which of the following hold true with regard to grants?
I. Grants are moneys provided to business and other entities that don't have to be repaid. II. Grantee must perform the service for which the grant was approved. III. Government grants exceed $400 billion per year. IV. Size standards for all businesses to qualify for grants are the same for all industries. A) I & II B) I & IV C) I, II, & IV D) I, II, & III
Amy stopped by the grocery store to pick up a gallon of milk. As she was waiting to check out she noticed that Soap Opera Digest had an interesting story about one of her favorite characters. As Amy is a huge fan of the long running soap, she had to buy a copy. In this example, the Soap Opera Digest is an example of a(n) _____ product.
A. specialty B. convenience C. business D. shopping E. unsought