Convertible debt-project evaluation and bankruptcy

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1. As a corporation what are the benefits and ramifications of using convertible debt to finance a publicly traded company? As an investor what are the benefits and ramifications of purchasing convertible debt in a publicly traded company? Are there any conflicts between the goals of the investor and the goals of the corporation?

2. Which two of the six methods used to evaluate projects, and to decide whether or not they should be accepted, do you prefer as a financial manager? Explain why you decided on these two and not the other four. List the perceived deficiencies of the four not selected.

3. What are the benefits and costs of placing the financially troubled company Bankruptcy proceeding? Is this a legitimate and ethical vehicle for management to employ for the benefit of company's stakeholders?

Reference no: EM1344293

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