Diluted securities accounting homework help

There has been much debate inside the company you work for as to the valuation of dilutive securities. The CEO of your company has indicated that any reduction in regular EPS sends a negative message to the financial markets that the company is not a great value for investors. Discuss why dilutive securities have a benefit to the issuer and the purchaser of convertible debt in response to the statement made by the CEO. Explain your reasoning.

Please make this 1-2 paragraphs.

Please site sources.