1. Skylar, the CEO of a publicly traded accounting firm, has recently issued convertible debentures. The debentures have the following characteristics:
2. -Par value of $1,000
3. -Callable at 108% of par
4. -Convertible at a price of $40/share (common stock is currently trading at $55/share)
5. Skylar's company:

a.could force conversion by calling the issue

b.could realize a $15/share gain by calling the convertibles

c.has no desire or reason to call the convertibles

d.cannot get the convertible holders to convert if they called the debt