5. All of the following are reasons a corporation would attach a warrant to their bond, except to: a. save money. b. make the bond more attractive. c. increase the number of shares outstanding when the warrants are exercised. d. lower the coupon.
They say the correct answer is c, can someone explain why this is? From what I understand when you exercise a warrant you are issuing new shares (which in turn are given to the buyer and dilute the shares outstanding), is this correct? If so, can someone explain why C is the answer?
Submitted April 09, 2017 at 11:01PM by maximus12793 http://ift.tt/2ogBz4Q
