Which of the Following Is Not a Requirement of a "Qualified

question 91

Multiple Choice

Which of the following is not a requirement of a "qualified employee discount"?

• A)The discount relates to goods or services of the employer.
• B)The discount on services doesn't exceed 20 percent of the price offered to customers.
• C)The discount can be elected up to five times annually.
• D)The employee discount on goods is not greater than employer's average gross profit.

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Definitions:

Conversion Value

The worth of a convertible security if it was converted into a different security, typically shares of the issuing company, at the current market price.

Straight Bond Value

The present value of a bond's future interest payments and its redemption value at maturity.

Conversion Price

The predetermined price at which convertible security can be exchanged for another asset, often shares of the issuing company's stock.