3. Corporations issue convertible bonds for two main reasons. One is the desire to raise equity...
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3. Corporations issue convertible bonds for two main reasons. One is the desire to raise equity capital without giving up more ownership than necessary. The other is A. the ease with which convertible debt is sold even if the company has a poor credit rating. B. the fact that equity capital has issue costs that convertible debt does not. C. that many corporations can obtain debt financing at lower rates. D. that convertible bonds will always sell at a premium. 4. Which of the following is an advantage of a restricted-stock plan? A. It creates new job opportunities in a company. B. It increases the market price of the stock. C. It never becomes completely worthless. D. It increases the profit of a company. 3. Corporations issue convertible bonds for two main reasons. One is the desire to raise equity capital without giving up more ownership than necessary. The other is A. the ease with which convertible debt is sold even if the company has a poor credit rating. B. the fact that equity capital has issue costs that convertible debt does not. C. that many corporations can obtain debt financing at lower rates. D. that convertible bonds will always sell at a premium. 4. Which of the following is an advantage of a restricted-stock plan? A. It creates new job opportunities in a company. B. It increases the market price of the stock. C. It never becomes completely worthless. D. It increases the profit of a company.
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Question 4 Correct option is c Restricted stocks will have value forever even if stoc... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259722615
9th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Posted Date:
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