If a company issues debt that is convertible at the corporation's option, in substance, the debt is equity.

Name: If a company issues debt that is convertible at the corporation's option, in substance, the debt is equity.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

Convertible debt issued at the corporation's option allows the issuer to convert the debt into equity at predetermined conditions, but until conversion, it remains a liability on the company's balance sheet, not equity.

If a Company Issues Debt That Is Convertible at the Corporation's