3 All of the following statements regarding convertible bonds are true except Holders of convertible bonds can choose how many shares of stock to receive at conversion A Holders of convertible bonds can choose when to convert to stock.8 Holders of convertible bonds have the potential to profit from increases in stock price.c Holders of convertible bonds have the option to not convert and continue receiving bond interest payments and par value at maturity.D 4 Kaldi Company has 20,000 shares of $10 par value. 5% cumulative preferred stock and 200,000 shares of $20 par value common stock outstanding. The company paid total cash dividends of $8,000 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is $2.000 A $8,000.B $12,000.C $10,000.0