Which of the following statements concerning convertible bonds is true?
A)
Convertible bonds are more risky than conventional bonds.
B)
Convertible bonds can be redeemed for cash at the discretion of the lender.
C)
Convertible bonds are the same as conventional bonds.
D)
Convertible bonds can be exchanged for stock at the discretion of the lender.
A
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Which of the following strategies may be used to alter a firm's capital structure toward a higher percentage of debt compared to equity?
A) stock repurchase B) stock split C) maintain a low dividend payout ratio D) stock dividend
According to the text, the Competitive Equality in Banking Act of 1987
A) turned the thrift industry around by providing the necessary funds to close the "zombie S&Ls." B) lowered the cost of bailing out the S&Ls by quickly closing "zombie S&Ls" before they could cause other thrifts to fail. C) failed to provide the funds necessary to close ailing S&Ls, and actually encouraged regulators to continue to pursue regulatory forbearance. D) did both A and B of the above.