E13-8

E13-8 On May 10, 2001, The Wall Street Journal reported: Verizon Communications sagged $1.78 to $53.82. The telecommunications ser- vice concern unveiled one of the largest convertible debt issues ever, a $3 billion offering of zero-coupon notes. Explain why the stock market would have such a negative reaction to Verizon's ability to raise $3 billion in financing. CHAPTER 13 EQUITIES . 231