Problem

Fill in the blanks, using the following terms: floating rate, common stock, convertible, s...

Fill in the blanks, using the following terms: floating rate, common stock, convertible, subordinated, preferred stock, senior, warrant.

a. If a lender ranks behind the firm’s general creditors in the event of default, his or her loan is said to be__________.


b. Interest on many bank loans is based on a __________ of interest.


c. A(n) bond can be exchanged for shares of the issuing corporation.


d. A(n) gives its owner the right to buy shares in the issuing company at a predetermined price.


e. Dividends on __________cannot be paid unless the firm has also paid any dividends

on its .

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Solutions For Problems in Chapter 14