Which of the following is NOT a characteristic of a warrant?
A) It is an 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
Correct Answer:
Verified
Q37: Many warrants are callable.
Q38: Which of the following statements about a
Q39: Dilution of EPS by warrants is not
Q40: If the stock price is low or
Q41: From the corporate financial officer's viewpoint, which
Q43: From an institutional investor's standpoint, many convertible
Q44: A warrant carries an option to purchase
Q45: A firm has warrants outstanding for investors
Q46: How are warrants used by corporations?
A)To decrease
Q47: Warrants are considered to be highly speculative
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