All of the Following Are True of Stock-Purchase Warrants EXCEPT

question 94

Multiple Choice

All of the following are true of stock-purchase warrants EXCEPT

• A) when a firm makes a large issue of debt, the attachment of stock-purchase warrants may add to the marketability of the issue.
• B) the attachment of warrants may lower the required interest rate.
• C) warrants are similar to conversion features on debt.
• D) suppliers of debt are more likely to require warrants on an issue of debt from an existing corporation than from a new firm.

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Definitions:

Internal Cause

A factor or motive originating within an individual or system that contributes to a particular outcome or action.

Distinctiveness

The quality of being easily distinguishable from others due to unique characteristics or features.

Consensus

A general agreement among the members of a group or community, often used in the context of decision-making processes.

Aptitude

A natural ability or skill that makes it easier for a person to learn or excel in a particular area.