A company issues Non-convertible bond with Equity Warrants. This security is equal to Preferred stock Call Option Convertible Bond Differential Voting Rights Equity shares
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A company issues Non-convertible bond with Equity Warrants. This security is equal to
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- Which one of the following terms applies to a bond that can be exchanged for the issuing company's common stock in the future? Group of answer choices Callable Municipal Zero coupon ConvertibleWhat is a convertible bond? If a company decidesto raise capital by issuing convertible bonds, howwould the terms on the bond be set? Considerspecifically the maturity, coupon rate, and callfeatures of the bond, as well as the conversionprice (or conversion ratio), together with any otherparameters required for the analysis.Bonds that can be exchanged for stock are called: Group of answer choices debenture bonds serial bonds convertible bonds callable bonds
- A convertible bond can be converted into ________. a. common stock of a different company b. common stock of the company c. common stock and then converted into preferred stock d. preferred stockA convertible bond can be converted into ________. A. preferred stock B. common stock and then converted into preferred stock C. common stock of a different company D. common stock of the companyEquity instruments include all of the following, except * A. Preference shares B. Corporate bonds and other debt instruments issued by the entity. C. Ordinary shares D. Warrants or options that allow the holder to purchase a fixed number of ordinary shares of the issuing entity in exchange for a fixed amount of cash or another financial asset.
- When bondholders decide to exercise their convertible bonds, the company values the common stock at the ________. Assume there is no beneficial conversion option at bond issue. Group of answer choices market value of the stock par value of the stock carrying value of the bonds par value of the bondsA bond backed by the future potential earnings and credit rating of the company is called a Group of answer choices A)debenture bond b)serial bond c)term bond d)convertible bond E)None of the aboveSelect the answer that contains ONLY potentially dilutive securities. a. convertible debt, junk bonds, preferred stock and warrants b. cumulative preferred stock, warrants, investment-grade bullet bonds and options c. warrants, options and convertible preferred
- A convertible bond issue should be included in the diluted earnings per share computation as if the bonds had been converted into common stock, if the effect of its inclusion is Dilutive Antidilutive a. No No b. Yes No c. Yes Yes d. No YesFor the following three types of dilutive securities: convertible bonds, convertible preferred stock, stock options which one (ones) involves security holders paying cash upon the conversion/exercise of the security (securities)? Enter 1, 2, 3, or 4 that represents the correct answer. 1. Convertible bonds and stock options. 2. Convertible bonds and convertible preferred stock. 3. Stock options only. 4. Convertible bonds only.1. When an entity issued bonds payable with detachable share warrants, how will share premium be computed if the share warrants are exercised by the bondholders? (Choose an answer and explain why) a. It is the balance of the share warrants outstanding. b. It is the sum of the share warrants outstanding and total par or stated value of the shares issued. c. It is the difference between the proceeds received based on the exercise price and the total par or stated value of the shares issued. d. It is the difference between the proceeds received based on the exercise price plus the share warrants outstanding and the total par or stated value of the shares issued.