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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!

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Solution Summary

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

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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 ...

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