How does a firms dividend policy affect each of the following? a. The value of its long-term

Question:

How does a firm’s dividend policy affect each of the following?

a. The value of its long-term warrants.

b. The likelihood that its convertible bonds will be converted.

c. The likelihood that its warrants will be exercised.

Bonds
When companies need to raise money, issuing bonds is one way to do it. A bond functions as a loan between an investor and a corporation. The investor agrees to give the corporation a specific amount of money for a specific period of time in exchange... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...