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3. Corporations issue convertible bonds for two main reasons. One is the desire to raise equity capital without giving up more ownership than necessary.
3. Corporations issue convertible bonds for two main reasons. One is the desire to raise equity capital without giving up more ownership than necessary. The other is A. the ease with which convertible debt is sold even if the company has a poor credit rating. B. the fact that equity capital has issue costs that convertible debt does not. C. that many corporations can obtain debt financing at lower rates. D. that convertible bonds will always sell at a premium. 4. Which of the following is an advantage of a restricted-stock plan? A. It creates new job opportunities in a company. B. It increases the market price of the stock. C. It never becomes completely worthless. D. It increases the profit of a company.
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