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umka2103 [35]
2 years ago
8

If the price of the common stock should decline by 50 percent, would the price of the convertible bond decline by the same perce

ntage? briefly explain your answer
Business
1 answer:
kondaur [170]2 years ago
7 0

If the price of the common stock declines by 50 percent, the price of the convertible bond will also decline by the same percentage

If the stock price falls, the short seller profits by buying the stock at the lower price closing out the trade. Convertible bonds tend to offer a lower coupon rate or rate of return in exchange for the value of the option to convert the bond into common stock.

Thus, if the price of a convertible bond will move in tandem with the price of the common stock, so if the stock price declines, the convertible bond price will follow suit.

Hence, convertible bonds typically carry lower interest rates payments.

To learn more about convertible bond here:

brainly.com/question/17173968

#SPJ4

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A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units for $13 each. The company has an effective
LekaFEV [45]

Answer: $29,000

Explanation:

Hello.

Your question was incomplete so I attached a picture showing the missing details.

Cost of Goods sold using First in First Out where the earliest goods are sold first.

Seeing as we have 4,000 units left, that means that none of the stock purchased on the 8th of November have been sold.

1,000 units of the stock purchased on the 18th of June remain.

Cost of Goods sold is therefore,

= 1,000*8 + 3,000 * 7

= $29,000

Cost of goods for Inventory available is $29,000

6 0
3 years ago
Which one is the correct answer ?
Vinil7 [7]

Answer:

I believe its B.

Explanation:

C and D don't make any sense since it is impractical to suffer during the hot months, and A is wrong (I believe) since the budget needs to be shifted to bring attention to the AC. So by elimination its B.

8 0
3 years ago
Based on what you see in the employee complaint log, what type of culture has HydroHealth been exhibiting? Servant? Equity? Clan
Butoxors [25]

Based on the record of employee complaints, it is correct to say that the HydroHealth company is exhibiting the market culture.

<h3 /><h3>What is market culture?</h3>

It corresponds to an organizational culture based on competitiveness in the internal and external environment, that is, competitiveness is also encouraged among employees, being a more aggressive model of culture.

Therefore, the market culture can generate some disadvantages, such as increased employee turnover and task overload, increasing conflicts and negatively impacting the perception of work.

Find out more about organizational culture here:

brainly.com/question/26965722

3 0
2 years ago
URGENT. Multiple choice.
Inessa05 [86]
I believe the answer is C because the company shares ( divides) the stock .
3 0
3 years ago
Susan started a cake decorating business that failed. She is convinced that she lacked the necessary funds to promote her busine
rosijanka [135]

Answer: Undercapitalization

Explanation:

Susan's cake decoration business suffered from Undercapitalization.

Undercapitalization occurs when a business is not properly funded to maintain it's running. Undercapitalization is mainly common in small scale businesses with little start up capital.

Undercapitalization can cause inability to pay for: workers wages, rent, transportation of business supplies.

4 0
3 years ago
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