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can someone please assist on how to get the right solutions 1. When preferred shares are classified as debt, their dividends are a Earnings, thus

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1. When preferred shares are classified as debt, their dividends are a Earnings, thus bypassing earnings. r dividends are deducted from Retained 2. When convertible debt are classified as equity, their interest payme earnings. False y, their interest payments are deducted from bond may be paid in a fixed number of shares at the 3. When the interest and principle of a bond may be paid in a fixed nu issuer's option, these bonds would be classified as equity, Fulze 4. Convertible subordinated debentures, entitled to annual interest at 3.2%. tmatuny." debentures may, at the company's option, be paid out in cash or converted into common sia using an exchange ratio governed by the market value of shares at the conversion ate. This debenture should be classified as a compounded financial instrument. Truel 5. A financial instrument is any contract that gives rise to a financial asset of one party and a financial liability or equity instrument of another party. Truse Multiple Choice Questions 1 Preferred shares are likely to be classified as debt if any of the following conditions exist A. Redemption is contractually required B. Redemption can be forced by the investor C. Terms of the shares are such that redemption is essentially forced, even if the entity is financially sound. . All of the above

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