Which of the Following Statements Is Most Correct

question 119

Multiple Choice

Which of the following statements is most correct?

• A)Corporate after-tax profits rose from $473.8 billion in 2006 to $616.2 billion in 2008.This rise coincided with the 2007-09 financial crisis.
• B)Corporate after-tax profits declined from $616.2 billion in 2006 to $473.8 billion in 2008.This decline coincided with the 2007-09 financial crisis.
• C)Corporate after-tax profits declined from $616.2 million in 2006 to $473.8 million in 2008.This decline coincided with the 2007-09 financial crisis.
• D)Corporate after-tax profits rose from $473.8 million in 2006 to $616.2 million in 2008.This rise coincided with the 2007-09 financial crisis.
• E)none of the above.

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Definitions:

Convertible Security

A financial investment that can be transformed into a different form, typically bonds or preferred stocks that can be converted into common stock.

Convertible Debenture

A type of bond that the holder can convert into a specified number of shares of common stock in the issuing company.

Conversion Value

The monetary value of a convertible security if it is converted into a different asset, usually shares of the issuing company's stock.

Bond Value

This refers to the present value of a bond's future interest payments plus the face value of the bond when it matures, essentially the price at which a bond is traded.