Multiple Choice
The exercise of warrants creates new shares which:
A) increases the total number of shares but does not affect share value.
B) increases the total number of shares and can reduce the per share value.
C) does not change the number of shares outstanding,similar to options.
D) increases share value because cash is paid into the firm at the time of warrant exercise.
E) increases the number of shares outstanding while maintaining the current price per share.
Correct Answer:

Verified
Correct Answer:
Verified
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