Why does a conversion option make bonds or preferred stock more attractive to investors?
Answer to relevant QuestionsRestrictions on dividend-declaring power may be voluntary or involuntary. Give an example of each.Your friend has developed a stock investing strategy that suggests you should always buy the shares of companies when they split their stock or issue large stock dividends. How do you respond? On January 1, 2013, Lyndon Systems granted its top executives options to purchase 6,000 shares of common stock (par $2) at an exercise price of $20 per share, the market price on January 1. The options have an estimated fair ...The following are data for the Foin Corporation on December 31, 20X8: 6% cumulative preferred stock, $40 par value, callable at $42, authorized 100,000 shares, issued and outstanding 100,000 shares ...... $ 4,000,000 ...The Rupley Company declared and distributed a 5% stock dividend. The stockholders’ equity before the dividend was as follows: Common stock, 5,000,000 shares, $1 par ....... $ 5,000,000Additional paid-in capital ...
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