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Business, 06.05.2020 07:10 sherifour

A corporation has issued $100 par, 8% cumulative convertible preferred stock, callable at par. The preferred is convertible into 1.4 shares of common stock. Currently, the preferred stock is trading at $102 while the common stock is trading at $75.50. The corporation calls the preferred stock at par plus accrued dividends of $2 per share. The corporation is making n(n):

a. tender offer
b. forced conversion
c. advance refunding
d. simultaneous transaction

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Answers: 2

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