If a company wanted to finance the purchase of equipment without diluting shareholders equity, which of the following operation could it consider?

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asked Oct 12, 2023 22.8k views

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Cedersved · Answer 1 · 2023-10-17T02:05:33+0000

Answer:

Issuing convertible bonds

Step-by-step explanation:

Convertible bonds are corporate bonds that can be exchanged for common stock in the issuing company. Companies issue convertible bonds to lower the coupon rate on debt and to delay dilution. A bond's conversion ratio determines how many shares an investor will get for it.

If a company wanted to finance the purchase of equipment without diluting shareholders equity, which of the following operation could it consider?

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