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
Ierofanga [76]
3 years ago
15

if the market price of common stock increases substantially, bondholders with convertible bonds benefit. convertible bonds can b

e converted into common stock at the option of the issuing company. bondholders with convertible bonds receive interest on the bonds until conversion. convertible bonds sell at a higher price and pay a lower rate of interest than those without the conversion option.
Business
1 answer:
BARSIC [14]3 years ago
5 0

Answer:

if the market price of common stock increases substantially,

bondholders with convertible bonds benefit.

Explanation:

A convertible bond is a fixed interest debt security.  The number of common shares into which it can be converted is predetermined at the issuance date. While the conversion can be done at certain time in the life of the bond, the decision to convert is usually at the discretion of the bondholder.  As investors, bondholders opt to convert when it would be most profitable.  This happens when the market price of the common stock increases.

You might be interested in
See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased add
RoseWind [281]

Answer:

The net impact on the income will be 2,795,000 each year

Explanation:

The purchase will generate the followng:

4.3 depreciation expense

and a tax shield, as this expense decrease the net income:

depreciation x tax-rate = tax-shield

4.3 x 35% = 1.505 millions

total impact on net income:

depreciation expense - tax shield

4.3 - 1.505 = 2.795‬ millions net impact

4 0
4 years ago
Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segm
Veseljchak [2.6K]

The correct choice from the given options is <u>"market targeting".</u>


When we have segmented the market, by isolating it up into little sections. Presently, we should focus on those segments we can serve most proficiently and successfully: Market Targeting. This is the second step of setting up a showcasing technique.  

In surveying market segments, a firm ought to think about three factors. These are:  

The segment size and growth

The segment structural attractiveness

The company objectives and resources.  

With a specific end goal to assess segments, the organization needs to gather and break down significant information first. This information may incorporate data on current portion deals, development rates and foreseen profitability of segments.

3 0
3 years ago
Hundreds of clothing stores closed in new york city this year. the supply of clothes, at each price level, will _____. increase
spayn [35]
The correct answer to this question is "decrease to a new equilibrium quantity." Hundreds of clothing stores closed in new york city this year. the supply of clothes, at each price level, will <span>decrease to a new equilibrium quantity. Hope this helps answer your question.</span>
8 0
4 years ago
Read 2 more answers
Assault and battery is a tort not a crime when the action involves people who know each other
Mrac [35]

Answer:

it is an assault if they know you, but they can choose if you are accused of it.

Explanation:

4 0
3 years ago
Read 2 more answers
Which of the following explains why the aggregate demand curve slopes downward? a) The interest-rate effect, the real-balances e
klio [65]

Answer:

Option (a) is correct.

Explanation:

Real balance effect: This effect states the relationship between the price level and the purchasing power of the consumer. If there is a higher price level in an economy then this will reduce the purchasing power of the consumers and results in a fall in investment expenditure, net exports and consumption expenditure. That's why aggregate demand curve is slopes downward.

Interest-rate effect: This effect states the cost of borrowing funds with the price inflation in an economy. If there is a higher interest rate then most of the consumers cut down there borrowings activities which is one of the reason of downward sloping demand curve.

Foreign purchases effect: When there is a fall in the price level then as a result the price in the United states falls relative to the foreign prices. Hence, there is an increase in the U.S exports and decrease in the U.S imports.

6 0
3 years ago
Other questions:
  • Swifty Corporation had 190000 shares of common stock, 20700 shares of convertible preferred stock, and $1540000 of 4% convertibl
    10·1 answer
  • Why are images and video important when you can simply describe what it is you want to explain?
    14·2 answers
  • Economists say that making choices involves comparing​
    14·1 answer
  • A comparison of leadership and management suggests that leadership is about creating a vision, while management is about carryin
    11·1 answer
  • Help 50 Points <br><br> This is economics question,please help
    7·1 answer
  • During the current year, Blossom Construction trades an old crane that has a book value of $122,400 (original cost $190,400 less
    11·1 answer
  • g Our company pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for
    12·1 answer
  • According to the "marketing rules" we discussed in class, if you cannot be first in a product category, Group of answer choices
    8·1 answer
  • During her annual review, Rhonda admitted to her supervisor that she is more productive in a quieter environment. The openness o
    10·1 answer
  • Why do you think women occupy so few seats on boards of directors
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!