If a corporation attaches warrants to a new issue of debt securities, which of the following would be a resulting benefit to the corporation?

If a corporation attaches warrants to a new issue of debt securities, which of the following would be a resulting benefit to the corporation?


A) Increase in earnings per share.

B) Reduction of the debt securities' interest rate.

C) Dilution of shareholders' equity.

D) Reduction of the number of shares outstanding.


Answer: B) Reduction of the debt securities' interest rate.


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