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.