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A Company Is Advised to Issue Convertible Notes

Question 74

Multiple Choice

A company is advised to issue convertible notes.They are advised of the conditions applicable to the convertible note issue.Which of the following conditions is incorrect?


A) The holder of the note has the right to convert the note into preference shares.
B) Notes are generally available on a pro-rata entitlement to shareholders.
C) Entitlements to convertible notes are generally not renounceable.
D) Notes are usually issued at a price close to the current share price at the time of issue.

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