All of the following are motivation for firms to issue warrants except for which one?
A)May allow the firm to issue debt at a lower rate when warrants are included
B)Used as a sweetener during merger negotiations
C)Is more desirable than convertible securities for creating new common stock
D)All of these options are motivations.

Question

Quizplus · Accepted Answer

Issuing warrants is not necessarily more desirable than convertible securities for creating new common stock, as both have different strategic uses and implications for the firm.

All of the Following Are Motivation for Firms to Issue