medium · Investment Banking rx-dcm-ecm
In a Net Share Settlement (NSS) scenario, what happens to the bond's principal on the Balance Sheet if the stock price is above the conversion price?
- It is reclassified to Additional Paid-In Capital (APIC).
- It remains classified as Long-Term Debt.
- It is treated as a non-controlling interest in the EV bridge.
- It is removed from the balance sheet and added to Retained Earnings.
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