The effect of exercising a warrant on the firm's capital structure reduces leverage ________ converting a convertible security.

Name: The effect of exercising a warrant on the firm's capital structure reduces leverage ________ converting a convertible security.
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Exercising a warrant typically involves issuing new shares, which increases equity and reduces leverage, but generally less than converting a convertible security, which also increases equity but often involves a larger number of shares.

The Effect of Exercising a Warrant on the Firm's Capital