The potentially dilutive effect of convertible securities is reflected in EPS calculations by the if-converted method. Describe this method as it relates to convertible bonds.

can a convertible bond ever result in the recognition of a gain in the income statement?

Required In relation to a convertible arbitrage trade in general, carefully explain the impact of a potential takeover/acquisition of the company that issued the convertible bond on the convertible arbitrage trade. Also, compare and contrast the effectiveness of a change of control put (at par) versus a ratchet table.

How do convertible bonds help reduce agencycosts?