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Explanation:
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NEW QUESTION: 1
Answer:
Explanation:
NEW QUESTION: 2
A company is concerned about the interest rate that it will be required to pay on a planned bond issue.
It is considering issuing bonds with warrants attached.
Advise the directors which of the following statements about warrants is NOT correct?
A. Warrants are a debt sweetener attached to the bond to drive down the interest rate payable on the bond.
B. Warrants give the holder the right to buy ordinary shares in the company at a fixed price at a future date.
C. Warrants can potentially be very expensive because they can involve the issue of shares at a discount in the future if exercised.
D. Warrants can be sold back to the issuing company for the nominal value of the share if no longer required by the bond holder.
Answer: D
NEW QUESTION: 3
A. Option C
B. Option A
C. Option B
D. Option D
Answer: C
Explanation: