Corporations issue convertible debt for two main reasons. One is the desire to raise equity capital that, assuming conversion, will arise when the original debt is converted. The other is
a. the ease with which convertible debt is sold even if the company has a poor creditrating.
b. the fact that equity capital has issue costs that convertible debt does not.
c. that many corporations can obtain financing at lower rates.
d. that convertible bonds will always sell at a premium
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Corporations issue convertible debt for two main reasons. One is the desire to raise equity capital that, assuming conversion, will arise ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Company Z is just starting to make a brand new product they have never made before. They have completed two units so far. The first unit took 13 hours to complete and the next unit took 11 hours.
Answers (1)
Eorge, a chef and owner of l'auberge, a popular restaurant, is always visiting his competitors to observe how they are doing things in their restaurants.
Answers (1)
How do you find tax liability?
Answers (1)
Park co. shipped inventory on consignment to recreations co. that cost $50,000. recreations paid $1,200 for advertising that was reimbursable from park. at the end of the year, 80% of the inventory was sold for $70,000.
Answers (1)
Some industrial products are created to meet the needs of one or a small group of customers. Boeing, for example, serves a very defined group of customers with its 747 aircraft model. This is an example of
Answers (1)
New Questions in Business
Curtain Co. paid dividends of $10,000; $12,500; and $14,000 during Year 1, Year 2, and Year 3, respectively. The company had 2,100 shares of 5.5%, $100 par value preferred stock outstanding that paid a cumulative dividend.
Answers (1)
Describe how legal contracts provide incentives for people to exchange goods and services
Answers (1)
List four wan technologies that are carried over the pstn.
Answers (1)
Which of the events is likely to occur when the business cycle is in a period of recession (contraction) ? an increase in the standard of living an increase in unemployment an increase in GDP (gross domestic product) an increase in economic growth
Answers (1)
What is the most common form of business organization in the united states?
Answers (1)