From a Firm's Point-Of-View, Which of the Following Is True

Multiple Choice

From a firm's point-of-view, which of the following is true of issuance of convertible bonds?

A) It acts as a permanent source of cheap funds.
B) It results in a non-tax-deductible interest payments.
C) It is an immediate sale of common stock.
D) It decreases financial leverage upon conversion.