Your firm uses both preferred and common stock as well as long-term debt to finance its operations. Which one of the following will increase the capital structure weight of the debt, all else
Equal?
A) An increase in the market price of the common stock.
B) An increase in the number of shares of preferred stock outstanding.
C) An increase in the quoted price of the firm's bonds as a percentage of face value.
D) The exercise of warrants by company employees.
E) The conversion of convertible bonds into equity shares.
Correct Answer:
Verified
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