If the Share Price Rises Substantially Above the Conversion Price

question 32

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) none of the other answers is correct

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Definitions:

Federal Infringement

Federal Infringement refers to actions by the federal government that overstep or violate constitutional rights or powers reserved to the states or individuals.

Assassinated

The act of killing a prominent or public figure, often for political reasons.

Assassination Plot

A plan or conspiracy to murder an important person, often a political leader or public figure, usually for ideological or political reasons.

Exiled Confederates

Refers to members of the Confederate States who fled the United States after the Civil War, often to countries such as Mexico or Brazil, to escape repercussions or continue their lives.