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An Advantage of a Convertible Security Is That It Provides

Question 92

Multiple Choice

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


A) increase the leverage of the firm
B) dilute the ownership interest
C) minimize dilution in earnings per share
D) time the sale of common stock when the price per share is increasing

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