According to marketability feature, the bonds which are attached to stock warrants have ___________?
Correct answer: D. increased marketability
- A. decreased floatation
- B. increased floatation
- C. decreased marketability
- D. increased marketability
Explanation
A stock warrant gives the bondholder a potential right to buy shares, adding an equity-related benefit to the bond and making it more attractive to investors. This generally increases its marketability.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The bonds issued by corporations for relatively longer term are classified as
The rate of return on non-callable bonds is added into value of issuer option to calculate
The principal value of TIPS is increased or decreased and is based on the measure of __________?
The call premium is $456 and the face value of the bond is $234 then the call price of bonds is
The call premium is $640 and the face value of the bond is $285 then the call price of bonds is
The current selling price of the municipal bonds available to bond holders is used to calculate