if-converted method


A method used to assess the dilution of convertible securities if converted into new shares when the stock price is above the exercise price. This method assumes convertible securities are converted either at the issuance date or the beginning of the year. The number of new shares is calculated based on the conversion ratio of the convertible security. Though converting such a security into new shares will inherently dilute the share price, this effect can have tax advantages by also reducing interest expense.

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You may want to try and use the if-converted method to figure out new ways for your company to grow.

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The if-converted method was working really well for us and I found it to be a very reliable method that was worth it.

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It is too late in the year for the if-converted method, but inquiries will open back up for this method at the end of the year as preparations are made for the next year.

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