The Exercise of Warrants Creates New Shares Which

question 16

Multiple Choice

The exercise of warrants creates new shares which:

• A)increases the total number of shares but does not affect share value.
• B)increases the total number of shares and can reduce the per share value.
• C)does not change the number of shares outstanding,similar to options.
• D)increases share value because cash is paid into the firm at the time of warrant exercise.
• E)increases the number of shares outstanding while maintaining the current price per share.

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Definitions:

Nonverbal Communication

The process of conveying a message without the use of words, through gestures, facial expressions, and body language.

Cultures

The shared values, traditions, norms, customs, arts, history, folklore, and institutions of a group of people.

Corporate Ladder

A metaphor for the hierarchical structure of a corporation or organization, indicating the levels of responsibility and authority.

Management Roles

Positions or functions within an organization responsible for directing, controlling, and organizing work activities and resources.