All of the Following Are Common Reasons for a Company

question 19

Multiple Choice

All of the following are common reasons for a company to issue convertible bonds except:

• A) The company prefers to issue shares, but is unsure of the present stock market and the timing.
• B) The bonds are issued to controlling shareholders so that they can receive interest payments in preference to other shareholders.
• C) A bond that has a favourable component such as a conversion privilege, can carry a lower interest rate than a "straight" bond.
• D) All of these answers are correct.

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Definitions:

Secretin

Secretin is a hormone produced by the S cells of the duodenum that stimulates the pancreas to release bicarbonate-rich fluids, aiding in the neutralization of stomach acid in the small intestine.

Small Intestine

A part of the gastrointestinal tract between the stomach and the large intestine that is responsible for most of the digestion and absorption of nutrients.

Cholecystokinin

A hormone released by the small intestine in response to the ingestion of fats, playing a critical role in digestion by stimulating the gallbladder to release bile.

Glossopharyngeal Nerve

The ninth cranial nerve, responsible for sensory and motor functions in the throat, including taste sensation and swallowing.