A Bond-Warrant Package

question 78

Multiple Choice

A bond-warrant package

• A)always increases the risk of the common equity.
• B)always decreases the risk of the common equity.
• C)could either increase or decrease the risk of the common equity.
• D)does not affect the risk of common equity.

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Definitions:

Breach of Contract

Happens when a party does not meet their contractual duties, enabling the other party to pursue legal solutions.

Benefit of His Bargain

A principle in contract law that entitles a party to expect the benefits promised in an agreement, often in the context of damages for breach.

Condition Precedent

A contractual requirement that must be fulfilled before a party's obligation or right comes into effect.

Constructive Condition

A condition presumed by law to exist in a contract, even if not explicitly mentioned, to ensure fairness and fulfill the intention of the parties.