24. Microsoft Corp. Series A 2.75 % Convertible Preferred issued on 12/17/96 maturing on 12/15/99; cap at 28%.

25. The service marked acronyms, followed in parenthesis by their respective investment banks, include: DECS (Citigroup), PRIDES (Bank of America Merrill Lynch), ACES (Goldman Sachs), PEPS (Morgan Stanley) and SAILS (Credit Suisse First Boston).

26. Assuming a spot stock price of $100 a share, the mandatory will also be issued at $100. If the conversion premium is 20%, the minimum conversion ratio is the issue price divided by the conversion price = $100.00/120.00 = 0.8333 shares per mandatory. If the stock price at maturity is at or above $120 the investor receives 0.8333 shares. If the stock price is at $100 or below, he receives one share that is the maximum number of shares per preferred. So, in the event that the stock price is $65 at maturity, the investor has a hit to the principal of $35 per share. If the stock price is between $100 and $120, the investor receives between 0.8333 and 1.0 shares so as to be worth the initial investment of $100. Sometimes for the sake of standardization, the par amount is set to $50 or $1,000; the conversion ratio is calculated in exactly the same way.