Multiple Choice
In order to determine if, in substance, a complex financial instrument is equity, the answer should be no to all of the following except:
A) Is the periodic return on capital obligatory?
B) Is the debtor legally obligated to repay the principal at the option of the creditor?
C) Is the amount convertible into common shares?
D) Is the debtor legally obligated to repay the principal at a fixed rate?
Correct Answer:
Verified
Correct Answer:
Verified
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