Which of the following support the rationale for issuing convertible bonds?
A)To reduce underwriting costs
B)To provide less expensive initial financing
C)To minimize dilution
D)All of the above are good reasons for issuing convertible bonds.

Question

Quizplus · Accepted Answer

All of the above are potential benefits of issuing convertible bonds. Convertible bonds often result in lower underwriting costs compared to issuing traditional equity, and they can also provide less expensive initial financing due to lower interest rates. Additionally, because convertible bonds can ultimately be converted into equity, they may result in less dilution for existing shareholders compared to issuing traditional equity.

Which of the Following Support the Rationale for Issuing Convertible