Question: Considering convertible bonds, the following statement is correct: It is normal to issue convertibles and not have their presence reflect dilution until they are converted.

Considering convertible bonds, the following statement is correct: It is normal to issue convertibles and not have their presence reflect dilution until they are converted. A drawback to using convertibles is their dilutive effect. A company usually would not want to issue convertible securities if its stock is undervalued in the market. None of the above.

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