Which of the following is most likely to happen with a convertible bond when the market price of the stock exceeds the conversion price? The stock does not pay a dividend
A) The bondholders will immediately convert their bonds to stock.
B) The issuing company will call the bonds and the bondholders will redeem them for the call price.
C) The issuing company will call the bonds and bondholders will convert them to common shares.
D) Both the issuing company and the bondholders will wait for the bonds to reach their maturity date.
Answer: C
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An on-the-run ten-year Treasury security is
A. a ten-year government bond that is in greatest demand by investors who want to hold it until it matures. B. a ten-year government bond that can be used to pay estate taxes, also known as a flower bond. C. a non-taxable ten-year government bond. D. a ten-year government bond that was the most recently issued.
Wholly owned subsidiaries face a low risk with large investments in one area.
Answer the following statement true (T) or false (F)
A sales rep might use new software for ________ to gain a competitive advantage.
A. shelf-space management B. sales forecasting C. time management D. customer contact management E. Software that aids in any of these could help provide a competitive advantage.
Which of the following statements about publicity is NOT true?
A. Publicity provides visibility at little or no cost. B. A good publicity program requires regular contacts with the news media. C. The benefits of publicity are hard to measure. D. Although publicity can be an effective promotional tool, it is not a vital part of public relations for a small business.