18. You are evaluating DOG as a potential target for acquisition. DOG has capital structure that consists of common stock and a convertible bond. The bond matures in 10 years, and upon conversion by a bondholder, the firm must issue additional shares of stock. Describe the bondholders” position. Discuss the valuation of the convertible bond. Explain when the bondholders should exercise their option. If DOG pays a dividend, would it be rational for the bondholders to exercise their option before the bond matures?