1. Which statement is correct with regard to bonds with warrants:
The exercise price of the warrants always remains constant throughout the life of the warrants
The warrants cannot be detached from the bond and sold separately
Warrants must be exercised within 2 years
Warrants bring in additional cash money when they are exercised
None of the above
2. Which of the following statements is correct regarding preferred stock.
It has preference over bonds in case of bankruptcy
It has preference over common stock in case of bankruptcy
It has preference over notes payable in case of bankruptcy
Its dividend rate is guaranteed
None of the above