If the stock price rises substantially above the conversion


If the stock price rises substantially above the conversion price, an advantage to the corporation would be that

the premium would decrease.

the floor price would offer the investor downside protection.

the bond would most likely be converted into common stock and the debt would not have to be repaid.

None of these options are advantages to the corporation.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: If the stock price rises substantially above the conversion
Reference No:- TGS02401681

Expected delivery within 24 Hours