What effect does the trend in stock prices (subsequent to issue) have

QUESTION

What effect does the trend in stock prices (subsequent to issue) have on a firms ability to raise funds through (a) Convertibles and (b) Warrants?

ke it easier for a firm to get additional funds by lowering the debt ratio, thus making it easier for the firm to borrow. In the case of warrants, if the price of the stock increases sufficiently, the warrants are likely to be exercised and thus to bring in additional funds directly.

 

ANSWER:

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