or 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.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 3Q: A bond that pays interest forever and has no maturity date is a perpetual bond, also called a...
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For 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.

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