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2 years ago
Many holders of convertible bonds will not convert when the firm's common stock price exceeds the conversion price because ________.
A) the common stock price may go up further and the firm cannot have any other mechanism to stop the bondholders from taking undue advantage of the conversion feature
B) they already have the market price benefit and may still receive fixed periodic interest payments
C) of the dilution of EPS
D) interest payments are tax deductible and it will affect their earnings
Textbook 
Principles of Managerial Finance
Edition: 14th
Authors:
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2 years ago
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