Answer:
Debt does not have predefined payment terms
Explanation:
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.
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Answer:
See below
Explanation:
Statement of stockholder's equity at the end of the year 31, December.
•Retained earning
Opening balance
$7,400
Income for the year
$7,700
Dividend paid
($2,400)
Common stock issuance
------------
End of year balance
$12,700
•Common stock
Opening balance
[$12,000 + $7,400]
$19,400
Income for the year
$7,700
Dividend paid
($2,400)
Common stock issuance
$7,200
End of year balance
$31,900
= $31,900 - $12,700
= $19,200
Answer: Option C
Explanation: In simple words, marginal propensity to consume refers to the proportion of the extra income that the households spent or consume for their satisfaction.
Thus phenomenon states that when the income of the consumer increases their disposable income also increases resulting in the inducement of consumption.
Hence from the above we can conclude that the correct option is C.
