Both warrants and convertibles are types of option


Which of the following statements is NOT CORRECT?

a. Both warrants and convertibles are types of option securities.

b. Warrants bring in additional funds when exercised, while convertibles do not.

c. Return on Assets will fall after a Convertible Bond is exchanged for equity.

d. Off balance sheet financing may make a company appear less risky than it actually is because its stated debt ratio will appear lower.

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Financial Management: Both warrants and convertibles are types of option
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