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    Principles of Managerial Finance
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    Exam 17: Hybrid and Derivative Securities
  5. Question
    When Warrants Are Exercised
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When Warrants Are Exercised

Question 24

Question 24

Multiple Choice

When warrants are exercised,


A) only the number of common shares outstanding increases.
B) debt is reduced.
C) debt is reduced while common equity increases.
D) there is no effect on the firm's capital structure.

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