Which of the Following Is NOT a Characteristic of a Warrant

question 28

Multiple Choice

Which of the following is NOT a characteristic of a warrant?

• A)It is a option to buy a specified number of shares of stock at a given price over a given period of time
• B)It represents a cash inflow to the issuing company when exercised
• C)When exercised,it replaces debt on the balance sheet
• D)It allows the bond to carry a lower coupon rate

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