Preferred stock may have all of the following characteristics in common with bonds with the exception of Select one: A. a possible conversion option into common stock B. tax-deductible payments C. annuity payments D. the lack of voting rights E. a fixed liquidation value
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Preferred stock may have all of the following characteristics in common with bonds with the exception of
Select one:
A. a possible conversion option into common stock
B. tax-deductible payments
C.
D. the lack of voting rights
E. a fixed liquidation value
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- Which of the following statements correctly describe characteristics of preference shares? Group of answer choices A. The required return on preference equity is expected to be less than the required return from ordinary equity. B. None of the other statements are correct C. A participating preference share participates in the interest payments paid to debtholders. D. Preference shares are called “hybrid” securities because they display characteristics of both short-term and long-term debt.Select the answer that contains ONLY potentially dilutive securities. a. convertible debt, junk bonds, preferred stock and warrants b. cumulative preferred stock, warrants, investment-grade bullet bonds and options c. warrants, options and convertible preferredPayment in advance refers to the Select one: a. None of the options b. Liabilities c. Long term stocks d. Equity share capital e. Assets
- Explain why preferred stock is considered to be a hybrid of equity and debt securities?A convertible bond issue should be included in the diluted earnings per share computation as if the bonds had been converted into common stock, if the effect of its inclusion is Dilutive Antidilutive a. No No b. Yes No c. Yes Yes d. No YesWhen computing diluted earnings per share (EPS), convertible bonds are:A. ignored.B. assumed converted whether they are dilutive or antidilutive.C. assumed converted only if they are antidilutive.D. assumed converted only if they are dilutive.
- Which of the following statements is correct in regard to trading bond investment? a. Trading bond investments are held with the intention of selling them in a short period of time b. Unralized gains and losses are reported as part of income c. both are correct d. both are incorrecti) Give one advantage and one disadvantage, from the perspective of the company seeking finance, for each of the following options: Equity Straight bonds Convertible bonds Retained earnings Callable bondsWhich of the following is NOT an investment an option stock bond cord
- The diluted earnings per share calculation includes Select one: O a. any convertible security that is antidilutive O b. only potential ordinary shares that are dilutive O c. all dilutive and antidilutive potential ordinary shares O d. all dilutive and antidilutive convertible securitiesBonds that can be exchanged for stock are called: Group of answer choices debenture bonds serial bonds convertible bonds callable bondsIn what major ways do stocks differ from bonds? When would bonds be a better investment choice than common stock?