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    Convertible Security for Common Stocks

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    An advantage of a convertible security is that it provides for deferred common stock financing. The purpose of deferring the sale of common stock is to ______

    increase the leverage of the firm, dilute the owership interest, minimize dilution in earnings per share, or time the sale of common stock when the price per share is basing

    I believe - minimize dilution in earnings per share - is the correct answer - please advise answer & why - thanks!

    © BrainMass Inc. brainmass.com October 1, 2020, 5:22 pm ad1c9bdddf
    https://brainmass.com/business/convertible-bonds/convertible-security-common-stocks-35371

    Solution Preview

    Answer: time the sale of common stock when the price per share is basing
    The company feels that this is not the right time to ...

    Solution Summary

    The convertible security for common stocks are examined. The dilution in earnings per share are minimized are given.

    $2.19

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