Firms sometimes issue bonds or preferred stock with stock warrants. Which of the following is/are not true?
a. The stock warrant permits the holder to exchange the warrant and a specified amount of cash for shares of the firm's common stock.
b. The preferred shareholders benefit if the market price of the common stock increases.
c. Firms may issue preferred stock with stock warrants attached.
d. Attaching a stock warrant permits the firm to issue preferred stock with a lower dividend rate.
e. none of the above
E
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