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12.) Which feature below is NOT a sweetener? call feature warrants conversion feature put feature 13.) Suppose Congress increases corporate tax rates next year to
12.) Which feature below is NOT a sweetener?
call feature | ||
warrants | ||
conversion feature | ||
put feature |
13.) Suppose Congress increases corporate tax rates next year to 55%. The likely effect (if other factors don't change) is a decrease in the firm's cost of debt.
True
False
14.) A funding component is
the total funding required for a specified decision point | ||
a long term source of capital | ||
a collateral agreement, such as pledging an asset as security for a morgage bond | ||
an ancillary requirement on a loan that affects its risk, such as a restrictive covenant |
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