Question 18 Jeeves Company has issued debt which is convertible in 5 years' time. Interest is payable at 12% and the current market value of the debt is 108. On conversion, investors will have a choice of either: 0 Cash at a 10% premium; or 0 Convert into 14 shares per loan note. The current share price is 7 and it is expected to grow in value by 3.5% per year. Which of the following statements is correct? A. Based on the information available, investors would be better off choosing to take the cash option by 6.39 B. Based on the information available, investors would be better off choosing to take the conversion option by 6.39 C. Based on the information available, investors would be indifferent between the cash and conversion option D. Based on the information available, investors would be better of choosing to take the cash option by 8.94