A Firm May Prefer to Issue a Convertible Bond, as Opposed

Multiple Choice

A firm may prefer to issue a convertible bond, as opposed to issuing equity, because
I.a convertible issue sends a better signal to investors than an issue of common stock;
II.an announcement of a stock issue generates worries of overvaluation and usually depresses the stock price;
III.a convertible issue shows the management's willingness to take a chance that the stock price will rise enough to lead to conversion and also signals management's confidence in the future

A) I only
B) III only
C) I and II only
D) I, II, and III