In Order to Determine If, in Substance, a Complex Financial

question 45

Multiple Choice

In order to determine if, in substance, a complex financial instrument is equity, the answer should be no to all of the following except:

• A)Is the periodic return on capital obligatory?
• B)Is the debtor legally obligated to repay the principal at the option of the creditor?
• C)Is the amount convertible into common shares?
• D)Is the debtor legally obligated to repay the principal at a fixed rate?

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Definitions:

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Professionals who study how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.