If the Share Price Rises Substantially Above the Conversion Price,an

question 83

Multiple Choice

If the share price rises substantially above the conversion price,an advantage to the corporation would be:

• A) the premium would decrease.
• B) the floor price would offer the investor downside protection.
• C) the bond would most likely be converted into common shares and the debt would not have to be repaid.
• D) the firm could raise the capital needed by issuing fewer shares than those sold from the conversion of the securities.

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The act of inhaling and exhaling the smoke of tobacco or other substances, often associated with health risks.

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The fleshy part of either side of the face below the eyes and between the nose and ear.