Which of the Following Could Be a Sensible Reason for Issuing

question 48

Multiple Choice

Which of the following could be a 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 under-valued

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Definitions:

Breast-feed

The act of feeding a baby with milk directly from the mother's breasts, providing ideal nutrition and immunity.

Proximodistal Development

The principle that growth and development proceed from the center of the body outward.

Trunk

The main structural part of a tree that supports the branches, or the main body part of humans and other vertebrates that extends from the neck to the abdomen.

Legs

Limbs of the body used for standing, walking, and running; essential components in human locomotion.