What motivates debenture holders to accept the offer of converting their debentures into shares or new debentures?
Answer & explanation
Correct answer: option 1
Debenture holders are motivated to accept the offer of converting their debentures into shares or new debentures when they believe it is financially advantageous to them. Overall, the decision to accept the conversion offer is driven by the individual financial goals and assessment of the debenture holders. They evaluate the potential benefits and risks associated with the conversion and make a decision based on their financial interests and expectations.