When Infrastructure Is Publicly Owned,it Is Important to Price Usage

question 3

Multiple Choice

When infrastructure is publicly owned,it is important to price usage to reflect

• A)the cost of rebuild the infrastructure once it is fully depreciated.
• B)the incremental profit from the use of the infrastructure.
• C)the marginal impact on the cost to society.
• D)the market clearing price.

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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.