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Suppose that MagnusBane International Plc is financed only through equity and straight debt. The company is exposed to conflicts of interest between shareholders, on one

Suppose that MagnusBane International Plc is financed only through equity and straight debt. The company is exposed to conflicts of interest between shareholders, on one hand, and the outstanding debtholders, on the other hand. In your view, would an issue of convertible debt reduce such conflicts? Use theoretical arguments and empirical evidence to support your answer. [Word limit: 200 words]

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