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Which of the following characteristics are drawbacks of convertible

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Which of the following characteristics are drawbacks of convertible bonds?;A. downside protection is ineffectual if the bond is bought at a large premium over par value.;B. interest rates on the debt-instrument part of a convertible bond are frequently below;market interest rates.;C. conversion may be forced on the bondholder by call provisions on the convertible bond.;D. all of the above are drawbacks of convertibles.;The computation of basic earnings per share will include consideration of;A. all convertible securities.;B. only shares outstanding.;C. shares outstanding and convertible securities.;D. none of the above.;A stock dividend will;A. increase the total value of stockholders' equity.;B. decrease the total value of stockholders' equity.;C. not affect the total value of stockholders' equity.;D. change the total value of stockholders' equity but the direction cannot be determined;unless the market price and par value is known.. Which of the following does not affect a company's dividend policy?;A. Legal rules concerning capital impairment;B. The efficient market hypothesis;C. Access to capital markets;D. Tax position of shareholders

 

Paper#33345 | Written in 18-Jul-2015

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