Which One of the Following Conditions for an Equity Warrant

question 62

Multiple Choice

Which one of the following conditions for an equity warrant that is generally attached to a bond issue is NOT correct?

• A) The holder has a conditional option to convert into ordinary shares of a company.
• B) A warrant holder receives dividend payments over the life of the warrant.
• C) Warrants may be detachable and traded separately from the bond issue.
• D) The cost of borrowing through a bond issue may be lower with a warrant attached.

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