Characteristic of hybrid security

Assignment Help Financial Management

Reference no: EM131825240

1. Hybrid securities are quite susceptible to being reclassified as stock. Which of the following might be a characteristic of a hybrid security?

A. A maturity date that is reasonably close in time B. Interest payable regardless of the corporation's income C. Not subordinated to debt of general creditors D. The securities are convertible into common stock

2. The risk free rate today is 5% with inflation expectations running at 3%. If inflation expectations in the future fall to 2%, what should be the new risk free rate?

A-7%

B-3%

C-4%

D-5%

Reference no: EM131825240

Questions Cloud

Annual compound rate of growth in the price of apples : What was the annual compound rate of growth in the price of apples? What was the annual compound rate of growth in the price of oranges?

Holding period yield from purchase and subsequent sale : Calculate your gains or losses, and holding period yield from the purchase and subsequent sale of the bond.

Develop five-year strategic plan with cost estimates : Develop a five-year strategic plan with cost estimates and time line. Describe the situation facing Missouri Can Company (MCC) at the time of the case.

Determine the weighted average cost of capital : Determine the Weighted Average Cost of Capital (WACC) and then discount the free cash flows that you will determine after applying the growth.

Characteristic of hybrid security : Hybrid securities are quite susceptible to being reclassified as stock. Which of the following might be a characteristic of a hybrid security?

Determine the theoretical futures price : Determine the theoretical futures price ($ per ounce) for the January 2018 Platinum futures contract using procedures discussed in class.

What is the present value of each alternative : What is the present value of each alternative and which option would you recommend?

Firm amount of cash from an increase : With a tax rate of 40%, what is the impact on NI and a firm’s amount of cash from an increase of $200 in COGS?

Calculating the premium paid over market value in merger : Fair value determination of goodwill and calculating the premium paid over market value in a merger. What is the new equity value of Tyler on its balance sheet?

User Account

All Pages