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
Svet_ta [14]
3 years ago
13

Which of the following is NOT considered a convertible instrument and is indicative of a complex capital structure? a. convertib

le bonds b. stock options c. warrants d. stock dividend e. None of the answer choices are correct.
Business
1 answer:
AfilCa [17]3 years ago
6 0

Answer:

e. None of the answer choices are correct.

Explanation:

A capital structure that comprises of those securities which can dilute it's earnings per share to common stockholders, is termed as complex capital structure.

Convertible bonds grant the owners, the right to convert their bonds into stocks, which leads to a dilutive effect on earnings per share for common stock holders.

Similarly, stock options grants a right to employees to purchase company's stock at a rate lower than the market price. This again is dilutive in nature.

Warrants are just like call options but when those are exercised create a dilution effect on the earnings per share of the company. Here the holder gets an option to buy new shares at an exercise price at a future date.

Stock dividends refer to paying common stock holders in the form of additional stock issue rather than paying them cash dividend.  Those dilute the stock's price.

Thus, all four lead to a complex capital structure.

You might be interested in
In king's view, what three qualities must a movement have in order to achieve the goal of integration?
Novay_Z [31]

Answer:

Martin Luther King Jr. believed that in order for an integration movement to be successful, it had to be:

  1. organized in a militant manner: members must be vigorously active supporting the cause
  2. the movement must have a mass character: must include everyone, not just some selected individuals
  3. the movement must reject (repudiate) violence

If a movement doesn't embrace peace, then it will generate conflict and violence. If the members are passive, there ideals will not be noticed. If the movement does not include everyone, then it will create more segregation.

3 0
3 years ago
What is a benefit of investing
Lena [83]

Answer:

For example if you add 500 dollars to your bank account this year by next year it’s gonna become $1000.so that means when you invest more you get the double of what you invested in a particular period of time.

5 0
3 years ago
Which of the following is not one of the different classes of stocks A. Growth stock B. Preferred Stock C. Common stock CSR
bezimeni [28]

Answer:

A. Growth Stock

Explanation:

Stocks are divided into classes based upon their features with respect to the rights they carry. Usually stocks are of two classes:

  1. Common Stock
  2. Preferred Stock

While the former carry voting rights and avail dividends as per the profitability of the company, the latter carry preferential rights with respect to principal repayment in the event of winding up apart from carrying a fixed rate of dividend which must be paid periodically.

Growth Stocks refer to those stocks which yield higher rate of growth than average market rate but don't usually carry a right to dividend. Growth stocks relate to capital appreciation.

7 0
3 years ago
In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers
sesenic [268]

Option A, The modification would make products more consistent with the expectations of the consumer.

<u>Explanation: </u>

The process to change the current products according to customer requirements is product modification.

Each material has external characteristics such as volume, form, texture, color, etc. and internal effects such as strength, toughness and other characteristics.

The transition in the existing product is referred to as product modification as per customer requirements. It may change the interior or external appearance of the property.

For Example, Mobile is a perfect example of recognizing product changes. Compare the app which started a year ago with the new mobile devices.

6 0
3 years ago
Assume that the reserve requirement is 20 percent. First National Bank has vault cash and deposits with the Fed of $80 million,
drek231 [11]

Answer:

The answer is (c) First National Bank is not in a position to extend additional loans.

Explanation:

Please find the below for detailed explanation and calculations:

The First National Bank current reserve ratio is calculated as : Vault cash and deposits of the Bank with the Fed/ Total demand deposits of the Bank = $80 million / $400 million = 20%.

As the First National Bank' reserve ratio is now equal to the Fed's Reserve Requirement, First National Bank can not further extend its loan portfolio's balance, otherwise, its reserve ratio will fall below Fed's requirement which is not acceptable.

So, the answer is (c).

3 0
3 years ago
Other questions:
  • On December 31, after making a concerted effort, management determined that it will not be able to collect the $1,200 owed to it
    13·1 answer
  • occurs when one supply chain member perceives that another supply chain member is making decisions in a manner that interferes w
    12·1 answer
  • Danny recently started revising his résumé after his managers failed to give him a pay raise that he felt would rightly compensa
    14·1 answer
  • "sally and harry both work at the local factory producing cars. sally earns $22 per hour working the day shift, and harry earns
    12·2 answers
  • Calculating Residual Income Pelican Manufacturing earned operating income last year as shown in the following income statement:
    10·1 answer
  • Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Pro
    14·1 answer
  • Freee brainly pointssssssssssssssssssssssssssssssssssssss yayayayayayayayayayayayayayayayay wowowowowowowowowowowowowowowowowowo
    7·2 answers
  • Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives an 80% discount for its bread at the end
    15·1 answer
  • Furniture purchase for cash in accounting equation​
    8·1 answer
  • The capital allocation line can be described as the:.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!