True or False and why?

1) An organizations return on equity will be affected by the organizations operating, investing, and financing activities.

2) When converting from a bond to a stock security, the bondholder must consider not only the conversion ratio, but also the interest payments and dividend payments of the respective investments.

3) Preferred stock is considered a hybrid because the value can increase, like common stock, but it also offers interest payments, like a bond.

4) When an organization is unable to fulfill the obligations of its debt covenants under a bond indenture, the legal consequence could result in the organizations assets being transferred to the bondholders. where the assets of the firm are transferred to the debt-holders.