When Warrants Are Exercised,what Happens as a Result

question 25

Multiple Choice

When warrants are exercised,what happens as a result?

• A)The security associated with the warrant drops in value depending on the exercise price of the warrant.
• B)Funds are transferred from the retained earnings account to the common shares account for the market value of the shares.
• C)The number of common shares outstanding changes.
• D)There is no new capital for the firm because the warrants are exchanged for the common shares.

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