When convertible bonds are converted by the investor,it creates cash outflow from a financing activity for the corporation.

Name: When convertible bonds are converted by the investor,it creates cash outflow from a financing activity for the corporation.
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Question

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When convertible bonds are converted by the investor, it does not create cash outflow from a financing activity for the corporation. Instead, it reduces the amount of debt on the balance sheet and increases the number of shares outstanding.

When Convertible Bonds Are Converted by the Investor,it Creates Cash