Final answer:
Firms generally call their convertibles if the conversion value is greater than the call price.
Step-by-step explanation:
The statement in the question is false. Firms generally call their convertibles when the conversion value is greater than the call price. By calling the convertibles, the firms can save on the interest payments associated with the convertible debt. If the conversion value exceeds the call price, it indicates that the stock price is higher, making it more advantageous for the firm to convert the debt into equity.