Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
12th Edition
ISBN: 9781259144387
Author: Richard A Brealey, Stewart C Myers, Franklin Allen
Publisher: McGraw-Hill Education
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Chapter 14, Problem 3PS

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

  1. a. If a lender ranks behind the firm’s general creditors in the event of default, his or her loan is said to be _____.
  2. b. Interest on many bank loans is based on a ____ of interest.
  3. c. A(n) _____ bond can be exchanged for shares of the issuing corporation.
  4. d. A(n) _____ gives its owner the right to buy shares in the issuing company at a predetermined price.
  5. e. Dividends on _____ cannot be paid unless the firm has also paid any dividends on its _____.
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