1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vilka [71]
2 years ago
10

When convertible bonds are first issued I. the conversion price of the stock is higher than the market price. II. the market pri

ce 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.
Business
1 answer:
yulyashka [42]2 years ago
3 0

<em>When convertible bonds are first issued </em>

  • <em> the conversion price of the stock is higher than the market price.</em>
  • <em>the coupon rate is lower than if the bond were not convertible.</em>
<h3>Why are convertible bonds issued?</h3>

Convertible bonds are issued by businesses to reduce their debt's coupon rate and postpone dilution. The number of shares an investor will receive in exchange for a bond depends on its conversion ratio. If the stock price is higher than if the bond were to be redeemed, companies can force the conversion of the bonds.

<h3>What is a convertible bond?</h3>

An interest-bearing fixed-income corporate debt asset known as a convertible bond has the option of being converted into a predetermined number of shares of common stock or equity. During the bond's term, the conversion from bond to stock is possible at specific times and is often at the bondholder's option.

<h3>What benefits do convertible bonds offer?</h3>
  • The interest expense reductions from convertible bonds can be substantial.
  • Convertible bonds often have lower interest rate payments than straight corporate bonds.
  • The conversion option gives investors the chance to profit from gains in stock price, so they accept the reduced interest payments. May 10, 2021.

learn more about convertible bonds here <u>brainly.com/question/14954723</u>

<u>#SPJ4</u>

You might be interested in
Jennifer wants to sell her car and Timmy agrees to purchase it. Jennifer and Timmy become involved in an over-the-phone negotiat
NARA [144]

The contract between Timmy and Jennifer is not valid for legal claims because there are no ways to prove the terms they agreed to for the sale/purchase of the car.

<h3>What is a valid contract?</h3>

When we enter into an agreement with another person to carry out any commercial activity, we generally must create a document in which all the terms and conditions of the contract are established in order to bind both parties to comply with the contract.

If another type of contract is made, for example by telephone, spoken or other modality that does not have ways of verifying what was agreed, it can be considered as invalid contracts.

Based on the above, the contract that Jennifer made with Timmy over the phone is invalid because there is no way to check what they agreed to.

Learn more about contracts in: brainly.com/question/2669219

#SPJ1

5 0
2 years ago
Trends Inc. is an apparel company. To keep up with the latest changes in the fashion industry, the company has to come up with i
AlekseyPX

Answer:

Dominant culture

Explanation:

A dominant culture is a culture that is dominant and practiced within a certain organization, ethnicity, etc. This dominant culture could be a language, a certain value or custom.

In the above question, aggressiveness, innovation and risk taking are dominant cultures in Trends Inc. This means that the above 3 values are very dominant feature in the manner of operation and running of the trends Inc.

This means that in Trends Inc, each and every employee of the firm has the above dominant cultures inculcated in them as it is a prerequisite and it shows the firm's values.

Cheers

7 0
4 years ago
Read 2 more answers
A business buyer wants to acquire a business in its totality, including the business identity and all rights, obligations, liabi
Brums [2.3K]
<span>Actually in this scenario the business buyer should do type of transaction that would merge the buying business with the parent business or company, and also the business buyer should buy all the shares and stakes of the buying business along with the copyrights, which would cover all the buying companies performing assests along with non-performing assests all in one shot surely with mutual merging.</span>
7 0
4 years ago
Read 2 more answers
Sensitive data on a gfe mobile device does not need to be encrypted.
ser-zykov [4K]

ANSWER – TRUE

 

Sensitive data on a Government Furnished Equipment (GFE) mobile device does not need to be encrypted. This is because all Government Furnished Equipment (GFE) has encrypted hard drive and all data are automatically encrypted; even after an authorized personnel logs in (locally or remotely), the data remains encrypted.

4 0
3 years ago
. Suppose absolute purchasing power parity holds. The exchange rate between British pounds and US dollars is British pound 0.75
svetoff [14.1K]

The stereo would cost 3750 British pound in Britain at the prevailing exchange rate.

Explanation:

Given details-  

The exchange rate between the British pound and US Dollar- 0.75 British pounds for 1 USD

Cost of the stereo= 5000 USD

Proportionate cost of the stereo in the British pound-

Exchange rate conundrum can be understood in the following way easily-

It means that for every 1 USD, a person in Britain would shell out 0.75 British pounds. In other words, the British pound is dearer than USD.

Since the cost of the stereo is 5000 USD and 1 USD is 0.75 British pound

5000 USD would equal 5000* 0.75 British pound= 3750 British pound

cost of the stereo is 3750 British pound

3 0
3 years ago
Other questions:
  • When a price ceiling is​ imposed, the price system is prohibited from rationing the product in the market in which the ceiling w
    11·1 answer
  • For smaller income-producing properties, appraisers may use the ratio of a property's selling price to its effective gross incom
    5·1 answer
  • Is there scarcity in schools and do students face scarcity with homework?
    13·1 answer
  • Livebinders is an example of​ a(n) _______________.
    15·1 answer
  • Stewart Parnell, the former CEO of the now-bankrupt Peanut Corporation of America, was charged with falsifying food safety repor
    14·1 answer
  • On December 31, 2017, Extreme Fitness has adjusted balances of $870,000 in Accounts Receivable and $69,000 in Allowance for Doub
    12·1 answer
  • Im so lonely lonely lonely lonely
    5·2 answers
  • In which situation would a person pay more in income tax than he or she did
    11·2 answers
  • Rainey Company's true cash balance at October 31 is $4,700. The following information is available for the bank reconciliation:
    11·1 answer
  • The labor-supply curve is affected by the trade-off between labor and leisure.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!