Adverse selection is a problem associated with equity and debt contracts arising from _________
举一反三
- Convertible note is essentially a/an... A: equity B: debt C: neither equity or debt D: both equity and debt
- 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
- 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.
- The concept of adverse selection helps to explain _________
- Long-term debt and equity instruments are traded in the _________ market.