A convertible bond is one where
a. the issuer can convert from a fixed interest rate to a floating one.
b. the issuer can convert it from long-term to short-term.
c. the issuer can retire the bond before its specified due date.
d. the holder can convert the bond into common stock at a future time.
d
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Which of the following statements is not true?
a. Operating leverage refers to the extent to which a company's net income reacts to a given change in sales. b. Companies that have higher fixed costs relative to variable costs have higher operating leverage. c. When a company's sales revenue is increasing, high operating leverage is good because it means that profits will increase rapidly. d. When a company's sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenues decrease.
An agent appoints a subagent. According to the law of agency,
A. An agent has inherent authority to appoint subagents. B. The principal's intention to permit an agent to delegate authority may be indicated by the character of the business. C. A subagent may bind the principal even if his or her appointment was not authorized. D. If appointment of the subagent was authorized, the subagent owes a fiduciary duty to the agent but not the principal.