Premium Essay

Chapter18

In:

Submitted By tuckermw
Words 760
Pages 4
Directions: Answer the following five questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in the course shell. Each question is worth five points apiece for a total of 20 points for this homework assignment. 1. Which of the following statements about convertibles is most CORRECT? a. The coupon interest rate on a firm’s convertibles is generally set higher than the market yield on its otherwise similar straight debt. b. One advantage of convertibles over warrants is that the issuer receives additional cash money when convertibles are converted. c. Investors are willing to accept a lower interest rate on a convertible than on otherwise similar straight debt because convertibles are less risky than straight debt. d. At the time it is issued, a convertible's conversion (or exercise) price is generally set equal to or below the underlying stock’s price. e. For equilibrium to exist, the expected return on a convertible bond must normally be between the expected return on the firm’s otherwise similar straight debt and the expected return on its common stock.

2.

Which of the following statements is most CORRECT? a. Warrants have an option feature but convertibles do not. b. One important difference between warrants and convertibles is that convertibles bring in additional funds when they are converted, but exercising warrants does not bring in any additional funds. c. The coupon rate on convertible debt is normally set below the coupon rate that would be set on otherwise similar straight debt even though investing in convertibles is more risky than investing in straight debt. d. The value of a warrant to buy a safe, stable stock should exceed the value of a warrant to buy a risky, volatile stock, other things held constant. e. Warrants

Similar Documents

Premium Essay

Managerial Accaunting

...In manufacturing to produce subjective items cost not exactly creating not subjective items with the less costs. Since if organization delivers top notch item despite the fact that the item's COGS will be more, the organization will pick up trust of client, great notoriety and long haul stable clients who will come back to purchase the item. Then again if organization produces not subjective items the COGS will be less, but rather it will prompt the costlier results, for example, duplicating the same item keeping in mind the end goal to swap it for the client and it will lose its notoriety according to clients which will make faithful clients to go the contenders. Managers have found that enhanced quality and narrow mindedness for high spoilage have brought down general expenses and expanded deals. As for the situation with Boeing Dreamliner, where the planes with the low quality cost for organization $2.5 billion to add to the planes' quality and alternate clients which are Quantas Airways and a Dubai-based air ship renting firm both crossed out the request for 15 planes with the cost of by and large for $4.5 billion. "Like Boeing, organizations are progressively centered around enhancing the nature of, and decreasing deformities in, their items, administrations, and exercises. A rate of imperfections viewed as typical in the past is no fairer. In this section, we concentrate on three sorts of expenses that emerge as an aftereffect of imperfections—spoilage, rework, and scrap—and...

Words: 1420 - Pages: 6

Premium Essay

Accounting

...JOSELYN MEJIA 8-765-941 ACCOUNTING FOR MANAGERS INDIVIDUAL HOMEWORK CHAPTER18 EXERCISE E18-3 | | | | | | | | | | | | | | | | |a | | |Month |Total Maintenance |Total Machine | | | | | | |Cost |hours | | | | | |January | | | | | | | | |2,400 |300 | | | | | |February | | | | | | | | |3,000 |400 | | | | | |March | | | | | | | | |3,600 |600 | | | | | |April ...

Words: 528 - Pages: 3

Premium Essay

Business Law Paper

...Legal Risk and Opportunity in Employment Business Law/Law531 University of Phoenix May 5, 2010 As business managers or business owners, it is required to know the laws that will protect the employer and employee too. Employment laws must be fully understood in order to identify when someone’s action will cause legal matters that will harm to the company. Legal Encounter 1: Pat vs. NewCorp The legal principals related to this encounter are, what does the policy hand book states, what is employment at will, and was Freedom of Speech violated. Pat would be the plaintiff because of wrongful discharge by NewCorp. NewCorp did not follow the employee policy hand book when terminating Pat as a manager. NewCorp will be the only defendant in this case because Pat’s manager is a representative of NewCorp. Terminating Pat without following the employee handbook was not the correct action that should have been taken. According to the employee policy handbook, Pat should have been written up and given a plan to correct his wrong actions as a manager. If Pat did not correct his wrong actions as a manager within a specific and reasonable amount of time, then NewCorp would have the rights to terminate Pat from his position as a manager. According to Moynihan, K, (2005)“Focuses on the ruling of the Vermont Supreme Court that a contract provision allowing an employer to terminate an at-will employee with or without cause does not insulate the employer...

Words: 1251 - Pages: 6

Premium Essay

Human Lies

...Take Home Quiz Section One: Chapter 11 1. True 2. False 3. True Chapter 12 1. True 2. True 3. True Chapter 13 1. True 2. False 3. False Chapter 14 1. False 2. True 3. False Chapter 15 1. True 2. True 3. True Chapter 16 1. False 2. True 3. True Chapter 17 1. False 2. True 3. True Chapter 18 1. False 2. True 3. True Chapter 19 1. False 2. True 3. True Chapter 20 1. False 2. True 3. True Section Two: Chapter 11 1. (a) Two key factors 2. (b) Little to do with human resource decisions 3. (c) planning Chapter 12 1. (b) Isn’t always smooth 2. (d) Who work in construction and manufacturing 3. (b) A third party called a mediator who encourages both sides in a dispute to continue negotiating and often makes suggesting for resolving the matter. Chapter 13 1. (c) Four steps 2. (c) Geographic segmentation 3. (c) Four Chapter 14 1. (c) Four general categories 2. (d) Brand Loyalty 3. (c) Four Chapter 15 1. (b) Whole set of marketing intermediaries 2. (d) Multiple modes of transportation 3. (b) Three Chapter 16 1. (b) Two very different things 2. (c) Unethical 3. (a) Do not give any time to the community in which they live. Chapter 17 1. (b) two very different things 2. (c) Unethical 3. (a) Do not give any time to the community in which they live. Chapter 18 1. (b) Two...

Words: 1695 - Pages: 7

Premium Essay

Marketing

...Escuela de Estudios Profesionales Programa Ahora Universidad Metropolitana, Universidad del Turabo, Universidad del Este MANA 210 TEORIA ADMINISTRATIVA Universidad del Este, Universidad Metropolitana, Universidad del Turabo © Sistema Universitario Ana G. Méndez, 2010 Derechos Reservados MANA 210 Teoría Administrativa Escuela de Estudios Profesionales Programa Ahora Universidad Metropolitana Preparado con la colaboración de: Prof. Luis M. Ramírez, MA 2004 Revisado Rosa María Berlingeri Bruno,M.A. 2010 MANA 210 Teoría Administrativa 2 Escuela de Estudios Profesionales Programa Ahora Universidad Metropolitana TABLA DE CONTENIDO INFORMACIÓN DEL CURSO -------------------------------------------------------------------------------------- 4 TALLER UNO --------------------------------------------------------------------------------------------------------- 12 TALLER DOS ---------------------------------------------------------------------------------------------------------- 18 TALLER TRES -------------------------------------------------------------------------------------------------------- 23 TALLER CUATRO --------------------------------------------------------------------------------------------------- 27 TALLER CINCO ------------------------------------------------------------------------------------------------------ 31 ANEJOS -----------------------------------------------------------------------------------------------------------------...

Words: 9574 - Pages: 39

Premium Essay

Mana 210

...Escuela de Estudios Profesionales Programa Ahora Universidad Metropolitana, Universidad del Turabo, Universidad del Este MANA 210 Teoría Administrativa MANA 210 TEORIA ADMINISTRATIVA Universidad del Este, Universidad Metropolitana, Universidad del Turabo © Sistema Universitario Ana G. Méndez, 2010 Derechos Reservados Escuela de Estudios Profesionales Programa Ahora Universidad Metropolitana Preparado con la colaboración de: Prof. Luis M. Ramírez, MA 2004 Revisado Rosa María Berlingeri Bruno,M.A. 2010 MANA 210 Teoría Administrativa 2 Escuela de Estudios Profesionales Programa Ahora Universidad Metropolitana TABLA DE CONTENIDO INFORMACIÓN DEL CURSO -------------------------------------------------------------------------------------- 4 TALLER UNO --------------------------------------------------------------------------------------------------------- 12 TALLER DOS ---------------------------------------------------------------------------------------------------------- 18 TALLER TRES -------------------------------------------------------------------------------------------------------- 23 TALLER CUATRO --------------------------------------------------------------------------------------------------- 27 TALLER CINCO ------------------------------------------------------------------------------------------------------ 31 ANEJOS...

Words: 9580 - Pages: 39

Free Essay

School Report

...La Immaculada Concepcion School High School Department Third Year Level November 5, 2012 BOOK REPORT IN ENGLISH Submitted to: Submitted by: Mr. Cristoff Sia LIMOS, Kamille E. III- St. Lucy of Light I. INTRODUCTION A. The Choice B. Nicholas Sparks *Nicholas Sparks was born on December 31, 1965, in Omaha, Nebraska, to Patrick Michael Sparks, a professor, and Jill Emma Marie (née Thoene) Sparks, a homemaker and an optometrist's assistant. He was the middle of three children, with an older brother Michael Earl "Micah" Sparks (1964) and a younger sister, Danielle "Dana" Sparks (1966–2000), who died at the age of 33. Sparks has said that she is the inspiration for the main character in his novel A Walk to Remember. Sparks was raised Roman Catholic and is of German, Czech, English and Irish ancestry. He and his wife are devout Catholics and are raising their children in the Catholic faith. His father was pursuing graduate studies, and the family moved a great deal, so by the time Sparks was...

Words: 4749 - Pages: 19

Premium Essay

Pdf, Doc, Docx,

...Chapter 1 (1) Instead of an individual’s status or title, it is his/ her Leadership Point of View (LPV) that determines a leader; furthermore, it will be too late for people to start building their LPV after they sit in leadership positions; (2) Different from points of view (POV) of a follower, a bureaucrat, an administer or a contrarian, the LPV requests an individual to be capable to see what needs to be done, to understand all the underlying forces at play in a situation, and to have the courage to initiate action to make things better; (3) To develop the leadership, the first thing that needs to be done is in yourself (“managing energy in yourself” or “self-leadership”). By constant studies, practices and active learning, people can obtain the capability to tell strategic stories; they can also attempt to overcome the fear of rejection (FoR) through balancing listening to others’ opinions and being confident of their owns. These points are recognized important due to the following notions. First, it breaks the stereotype that people’s views reply on their positions and manifests the possibility and necessity for juniors to build up their own LPV. Second, it offers critical procedures and guidelines on how to facilitate with the LPV for achieving effective leaderships. Moreover, it emphasizes the significance of self-leadership prior to motivating others. Comparing with motivating other, self-leadership, characterized by active study and self-cautious, is a more fundamental...

Words: 5730 - Pages: 23

Premium Essay

Paper

...3 711 Chapter Tax Accounting TRUE-FALSE QUESTIONSCHAPTER 13 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. A partnership may adopt any tax year without IRS permission. A corporation ling its rst return must annualize its income if the tax period is less than 12 months. A taxable year may be as short as one day and may exceed 366 days. Under no circumstances may a corporation change its scal year without IRS permission. A taxpayer engaged in two or more separate and distinct businesses may use different accounting methods for both businesses. A grocery store may use the cash basis of reporting sales. In general, a CPA on the cash basis method will never have a bad debt deduction. A cash basis taxpayer may deduct prepaid business expenses currently. Both cash and accrual basis taxpayers will be taxed on a dividend when it is actually received. Computing cost of goods soldand being on the accrual basis are independent of each other. If, in the IRSs opinion, the taxpayers books do not clearly reect income, the IRS may revise them so that they do. Taxpayers must generally obtain the permission of the IRS to change accounting methods. A correction of an error in a tax return is usually considered a change in accounting method. The IRS can require a change in accounting methods if the method used by a taxpayer does not clearly reect income. IRS permission is not required for a change from FIFO to LIFO. The installment method cannot be used unless the total selling price...

Words: 13382 - Pages: 54

Free Essay

Handbook

...Bachelor of Arts in Business Economics STUDENT’S HANDBOOK 2011/2012 Lazarski University Warsaw, June 2011 1 Lazarski School of Commerce and Law Student’s Handbook- Bachelor of Arts in Business Economics Content Page 4 6 8 13 15 15 15 17 17 18 19 21 23 24 26 28 30 32 34 35 37 39 41 43 44 46 48 49 50 51 53 54 55 57 58 59 60 62 63 63 64 66 67 69 72 74 75 76 77 79 80 82 The Programme The Degree Assessment Quality Assurance Admission Procedures Erasmus Study in BABE Programme Administrative Issues Course Descriptors Mathematics Introductory Microeconomics Introduction to Sociology Current Issues of the European and Global Economy Academic Writing Introduction into Business Introductory Macroeconomics Introduction into Economic Analysis Economics of Integration Information Technology Intermediate Microeconomics Issues in Macroeconomic Policy Mathematical Economics Statistics Regional Economics Introduction to Strategic Management Banking and Finance International Business Law Research Proseminar Accounting Managerial Economics International Economics Intermediate Macroeconomics Econometrics Research Methods Social Policy Game Theory Public Finance Investment Analysis BA Seminar Electives Financial Accounting Monetary Theory and Policy - The Impact of Global Crisis Principles of Marketing The World Economy – Retrospective View The Small and Medium-Sized Enterprises (SME) Sector Economics of Telecommunication Demography and Economics of Contemporary European Migration Personal...

Words: 47436 - Pages: 190