An Advantage of a Convertible Security Is That It Provides

question 170

Multiple Choice

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

• 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 basing.