Cameron Inc. has $10 million of bonds outstanding that are convertible into common shares. The current price per share is $ 44 and the stated conversion price is $ 49 per share. Cameron also has exchangeable bonds issued for $ 20 million that are to be exchanged for shares of Adam Inc. worth $ 20 million (therefore no gain or loss is realized on the exchange). Based solely on the facts provided above, what effect should the convertible bonds and exchangeable bonds have on an analyst’ s assessment of Cameron’ s fundamental debt to total capital ratio Convertible Bonds Exchangeable Bonds ①A. Increase Decrease ②B. No effectDecrease ③C. No effectNo effect
A．
