Which of the following is a characteristic of convertible


1. Convertible preferred stock is converted into ________.

shares of common stock

warrants

debentures

secured bonds

2. Which of the following is a characteristic of convertible bonds?

It is a more expensive form of financing than straight bonds.

Conversion increases a firm's debt ratio.

It is nothing but a put option.

It enhances marketability of a firm's bonds.

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Financial Management: Which of the following is a characteristic of convertible
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