Which the Following Is True of Stock Purchase Warrants

Multiple Choice

Which the following is true of stock purchase warrants?

A) When a firm makes a large issue of debt, the attachment of stock purchase warrants may deteriorate the marketability of the issue.
B) Warrants are similar to conversion features on debt.
C) Suppliers of debt are more likely to require warrants on an issue of debt from an existing corporation than from a new firm.
D) The attachment of warrants increases the required interest rate.