KT Enterprises has expanded its operations into a new field, which is the production of everyday dinnerware

KT Enterprises has expanded its operations into a new field, which is the production of everyday dinnerware. If this project goes well, the firm has the option to expand its production into fine china. What type of option is this?    A.  financial B.  strategic C.  put D.  intangible E.  call Refer to section 24.6

16.

Amy is a current shareholder of DJ Industries. She has been given the right to purchase an additional 25 shares of DJ Industries stock at a price of $32 a share if she exercises that right within the next 12 months. What is this security called that Amy has been given?    A.  convertible bond B.  warrant C.  straddle D.  spread E.  put Refer to section 24.7

17.	Jeff owns a $1,000 face value bond. He can exchange that bond for 25 shares of KNJ stock at any time within the next 2 years. What type of bond does Jeff own?    A.  secured B.  warranted C.  convertible D.  junk E.  callable Refer to section 24.7

18.	The dollar amount of a bond's par value that is exchangeable for one share of stock is called the:    A.  conversion premium. B.  par value. C.  conversion value. D.  conversion price. E.  conversion ratio. Refer to section 24.7