When a company has a convertible bond in its capital


1. When a company has a convertible bond in its capital structure,

it can reduce its debt-to-equity ratio by calling the bond.

there is no effect on the firm's earnings per share.

there is no advantage to the firm in forcing conversion of the bonds.

All of these options

2. A particular country's pattern of importing more than is being exported is likely to

depress that country's currency.

depress other countries' currencies.

increase the value of that country's currency.

More than one of the options.

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Financial Management: When a company has a convertible bond in its capital
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