What question did this study set out to answer?

This research aims to establish a method for teaching the calculation of effective yield to assess convertible securities' equivalency to common stock.

June 15, 2026Issues in Accounting Education

Determining Common Stock Equivalency of Convertible Securities: A Teaching Approach.

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Authors

PMP. Michael Moore TOThomash H. Oxner JKJimie KuselUniversity of Arkansas at Little Rock

Discussion

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Implication

Teaching approach demonstrates effective yield calculations for determining common stock equivalency in students, suggesting practical data organization.

Key Points

This research aims to establish a method for teaching the calculation of effective yield to assess convertible securities' equivalency to common stock.
Developed a teaching approach for effective yield calculations and data organization.
Created a decision table for evaluating common stock equivalency.
Emphasized the importance of challenging students to use the data effectively.
Introduced the effective yield as a crucial method for assessing convertible securities.
Demonstrated the inadequacy of the cash yield test, particularly with zero-coupon convertible bonds.
Provided a structured decision table for students to apply in determining stock equivalency.

Cite This Study

Moore et al. (1987) studied this question.

synapsesocial.com/papers/6a2f9782a1cfeec4908288b3 https://doi.org/10.2308/iae-5841789

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Implication

Teaching approach demonstrates effective yield calculations for determining common stock equivalency in students, suggesting practical data organization.

Determining Common Stock Equivalency of Convertible Securities: A Teaching Approach.

Discussion

Member takes

Implication

Key Points

Cite This Study

Determining Common Stock Equivalency of Convertible Securities: A Teaching Approach.

Discussion

Member takes

Implication

Key Points

Cite This Study

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