A) Company C is financed only through equity and straight debt. The company has conflicts of interest between shareholders, on one hand, and the outstanding debtholders, on the other hand. Would an issue of convertible debt reduce those conflicts? Use theoretical arguments and empirical evidence to support your answer.

B) What are other rational motives for companies to issue convertible debt?

Answer rating: 100% (QA)

A Answey A As Conflicts Between Share holders and Debtholdes are common in the Organisation which ... View the full answer