If a firm attempts to call an outstanding convertible bond, the bondholders:
a. have the preemptory right to convert the bonds into stock.
b. must tender their bonds immediately and receive the call price.
c. must challenge management's decision to call the bonds via a proxy contest.
d. have the option to keep their bonds outstanding.
A
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Which of the following statements is true regarding debt ratios?
A. Firms with relatively low debt ratios have higher expected returns when business is good. B. Firms with relatively low debt ratios are exposed to more risk compared to firms with relatively high debt ratios. C. Firms with relatively high debt ratios have higher expected returns when business is bad. D. Firms with relatively high debt ratios have higher expected returns when business is good. E. Firms with relatively low debt ratios have higher expected returns when business is poor.
________ can be found where cost of receivables is equal to the revenues from increased sales
A) Accounts payable B) Accounts receivable C) Optimal amount of credit D) Cost of extending credit
The Clayton Act was passed in part because the courts were not enforcing the Sherman Act as strictly as it had intended
Indicate whether the statement is true or false
The Federal Housing Administration (FHA)
A) was set up to buy mortgages from thrifts so that these institutions could make more loans. B) funds purchases of mortgages by selling bonds to the public. C) provides insurance for certain mortgage contracts. D) does all of the above. E) does only A and B of the above.