According to marketability feature, the bonds which are attached to stock warrants have ___________?
Correct answer: C. increased marketability
- A. decreased floatation
- B. increased floatation
- C. increased marketability
- D. decreased 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.
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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.
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