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Which ONE is not a benefit of convertible loan stock?

If Convertible loan stock is fixed return securities which can, at the option of the holder, be convertible into ordinary shares of same company

So which ONE is not a benefit of convertible loan stock?

A. The issuing company can option finance at lower rate of interest

B.It introduces an element of gearing,albeit short-term

C.It can avoid redemption problems(Cash flow)

D.It does dilutes Share holder control intialy

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Question added by Md. Moshiur Rahman Sumon , Assistant General Manager( Corporate Finance & Head of Internal Audit) , Progressive Life Insurance Company Limited
Date Posted: 2015/04/14
Shahzad   Husain
by Shahzad Husain , Manager Tax & Audit , Amazon Foods (Golden Amazon Food Stuff Trading)

C.It can avoid redemption problems(Cash flow)

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