RJF is a successful technology company who develop and offer e-commerce solutions to a large range of organisations in R-land, where the currency is the R$. The company's 20X2 Statement of Financial position includes a range of long term finance including 100,000 R$10 convertible preference shares, each convertible to 4 ordinary shares at the end of 20X4. You are RJF's Finance Manager and have recently recruited a new Finance Assistant who has not previously seen convertible preference shares. You are preparing a set of notes for your assistant and plan to include details of all shares, including ordinary shares which are currently trading at R$2.00. Which should be included in the notes on RJF's convertible preference shares? Solution A.The convertible preference shares must be converted into ordinary shares at the end of 20X4. B.Shareholders gain from converting when the ordinary share price is above R$2.50. C.Post conversion, shareholders receive both ordinary and preference dividends. D.Growth in the ordinary share price in 20X5 will benefit all current preference shareholders