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NEW QUESTION: 1
Bubba buys a $4 convertible preferred with a $50 par value that is exchangeable for common stock at
4 7.50. If the preferred stock is trading at 52 and the common stock at 51, Bubba determines that the
preferred stock is:
A. overpriced and will quickly decline
B. selling at a 4% premium over conversion value
C. underpriced and should rise quickly
D. going to be called when the common stock price is $52
Answer: C
Explanation:
underpriced and should rise quickly. The parity price for the common stock is about $49.38 -
determined as:50 / 47.50 = 1.053 52 / 1.053 = 49.38 Since the common stock is trading at 51, the
preferred is underpriced.
NEW QUESTION: 2
Which deployment modes support Prevent?
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2 . SPAN port
3 . MTA
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A customer has a critical invoice application for which the system is mostly underutilized. During the last week of the month, response times become unacceptable due to growth. The customer does not want to pay for a system that is idle most of the time.
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A. Elastic Capacity On Demand
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