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Instructions 1. You may open this unit assessment multiple times, but you may only submit it once. You may print the unit assessment and prepare your...

Finance Quiz Resubmit
Instructions 1. You may open this unit assessment multiple times, but you may only submit it once.  2. You may print the unit assessment and prepare your answers offline. Alternatively, you may enter and save your answers  for a portion of the assessment and continue at a later time.  3. Your textbook and other reference materials may be used to complete this assessment.      4. When answering the  multiple choice  questions, mark the correct response in Blackboard.  5. When answering the  written response  questions, please follow these requirements:  a. Your answer to each written response question should contain a minimum 200-300 word response.  b. Spelling and grammar will impact your grade.  Make certain to proofread each written response carefully before  clicking on the submit button.  c. Make certain that all of your sources (including your textbook) are referenced at the end of the written response  and that directly quoted information within your written response is cited to show the difference between your  ideas and the exact words of your sources.  d. General encyclopedias are prohibited sources. They are NOT to be used. Examples of prohibited sources include, but are not limited to, Wikipedia, Encarta, and World Book.  e. It is suggested (although not required) that these references and citations be put in APA Style because you will  be using this style in other CSU papers, projects, case studies, and article reviews. On the main page of the  course you will find a “My Library” button on the left; click it and then “APA Resources” for extensive information  of APA Style.  6. Once all questions have been answered, click the "Submit" button located at the bottom of the assessment.  7. If you have questions regarding your sources or general questions regarding the assessment, please contact your  professor.  Question 1 Question 1 1. Warrants are Answer long-term options to sell shares of the issuing firm's stock. fairly stable, low-risk investments. investments whose value is directly related to the price of the underlying stock. structured to sell for precisely their intrinsic value. 4 points Question 2 Question 2 1.
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The theoretical floor value for a convertible bond is its Answer conversion price. conversion value. par value. pure bond value. 4 points Question 3 Question 3 1. The conversion premium will be large Answer if investors have great expectations for the price of the common stock. if interest rates decline. when the conversion value is much greater than the pure bond value. when the stock price is very stable. 4 points Question 4 Question 4 1. Sen Corporation warrants carry the right to buy 10 shares of Sen common stock at $3.50 per share. The common stock has a current market price of $4.25 per share. The intrinsic or minimum value of one Sen warrant is Answer $.75 $7.50 $15 $0 4 points Question 5 Question 5 1.
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