Which of the Following Is the Most Sensible Reason for Issuing

question 48

Multiple Choice

Which of the following is the most sensible reason for issuing convertibles?

• A)Convertibles are convenient and flexible-they're usually unsecured and subordinated, and cash requirements for debt service are relatively low.
• B)Interest rates on convertible issues are significantly less than on straight debt.
• C)Firms that need equity capital use convertibles as a roundabout way of issuing stock.
• D)Firms prefer to issue convertibles when their shares are undervalued.

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Definitions:

Swapping Data

The process of exchanging data between different storage areas or devices to optimize memory or resource usage.

Swap File

A space on a hard drive used by an operating system to simulate additional RAM by temporarily holding data that is not currently being used in RAM.

RAM

A type of volatile computer memory where data can be accessed in any order, no matter where it is located, vital for tasks requiring fast access to large volumes of data.

Compressed Files

Files that have been reduced in size through data compression algorithms to save storage space or speed up file transfer.