Which of the followings are the advantages of convertible bonds
A: lower interest rate
B: Self-liquidation
C: Increase in debt capacity on conversion
D: May be preferred to an issue of shares if shares are undervalued.
A: lower interest rate
B: Self-liquidation
C: Increase in debt capacity on conversion
D: May be preferred to an issue of shares if shares are undervalued.
举一反三
- Which of the following is an aim of a stock split? A: To increase the number of shares on issue and so affect the capital structure B: To reduce the dividend payments C: To increase the share price D: To try to improve the liquidity of shares
- A convertible bond issue has a conversion premium of $50 at a time when the underlying share’s price is $35. The convertible has a par value of $1,000 and is convertible into 80 shares of the issuer’s stock. The convertible bond’s price is closest to: A: $1,050 B: $2,850 C: $2,750
- Which of the following statements is NOT a feature of convertible notes? () A: Convertible notes offer a lower interest rate than straight debt<br/>instruments. B: Convertible notes are usually made available to ordinary<br/>shareholders. C: Maturity of convertible notes is usually shorter than straight debt<br/>instruments. D: Note holders can generally participate in new issues of equity.
- If interest rates increase, the prices of bonds and preferred stock increase.
- Which of the following statements is most accurate regarding a firm’s cost of preferred shares A firm’s cost of preferred stock is:（） A: the market price of the preferred shares as a percentage of its issuance price. B: the dividend yield on the firm’s newly-issued preferred stock. C: approximately equal to the market price of the firm’s debt as a percentage of the market price of its common shares.