An exchange offer may
A)allow customers a 30 day money-back guarantee on the ﬁrm's product.
B)allow customers a 90 day warranty on the ﬁrm's product from defects.
C)allow bondholders to exchange some debt for equity.
D)allow shareholders to exchange some of their equity for debt.
E)Both C and D.

Question

Quizplus · Accepted Answer

An exchange offer typically allows bondholders to exchange some of their debt for equity and allows shareholders to exchange some of their equity for debt. So, both option C and D are correct. Option A and B are not related to exchange offers.

An Exchange Offer May