How should the convertible loan notes be accounted for?
A: As debt
B: As debt and equity
C: As equity
D: As debt until conversion, then as equity
A: As debt
B: As debt and equity
C: As equity
D: As debt until conversion, then as equity
举一反三
- Convertible note is essentially a/an... A: equity B: debt C: neither equity or debt D: both equity and debt
- Which of the following statements best compares long-term borrowing capacity ratios? A: The debt/equity ratio is more conservative than the debt ratio. B: The debt ratio is more conservative than the debt/equity ratio. C: The debt/equity ratio is more conservative than the debt to tangible net worth ratio. D: The debt to tangible net worth ratio is more conservative than the debt/equity ratio.
- Long-term debt and equity instruments are traded in the _________ market.
- A levered firm is one that has ________ outstanding. A: debt B: equity C: preferred stock D: equity options
- Which of the following statements about the characteristics of debt and equity are true?