Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 0 of 3
A firm with a capital structure made up of common stock and non-convertible bonds is said to have a ______.
B. conventional capital structure
C. simple capital structure
A. non-diluted capital structure
B. conventional capital structure
C. simple capital structure
User Contributed Comments 4
| User | Comment |
|---|---|
| jpducros | I've seen questions where convertible-bond are still considered simple structure, while Warrant is definitely a sign of a complex structure. Not sure why however. |
| Xiangrong | Maybe it's because convertible-bonds are not always dilutive, ie. when the option is OOM, it's like a normal bond. |
| ascruggs92 | The Key between simple and complex is the prospect of dilution. If the bonds are not convertible for whatever reason within the current period, there is no potential of dilution and the company is said to have a simple structure until terms of conversion are met |
| Freddie33 | 40 questions... kill me now |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe geopolitics from a cooperation versus competition perspective
CFA® 2025 Level I Curriculum, Volume 1, Module 5.