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Business, 25.10.2021 23:40 ronsosaa

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. If a customer buys 100 preferred shares, converts, and then sells the common stock in the market, the profit is (ignoring commissions): a. tender offer
b. forced conversion
c. advance refunding
d. simultaneous transaction

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A corporation has issued $100 par, 8% cumulative convertible preferred stock, callable at par. The p...
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