True or False and Why?
1) When preferred stock has a convertible component in its offering, the conversion ratio is the ratio that determines how many shares of common stock the investor can secure for each share of preferred stock they own.
2) One source of potential conflict between bond and stockholders is the amount of liquidity the company should maintain
3) The prospectus for stock and a bonds covenant agreement are legal documents which describe certain parameters or obligations of the company to holders
4) The sale of a manufacturing facility is part of the operating activities portion of the three-part cash flow statement.