15. Which statement is false?

a. A convertible bond gives the bondholder the right to exchange their bonds for a preset number of shares of stock.

b. A warrant is a security that is often sold with bonds but that can be detached (bought and sold separately) from the bond

c. Most preferred stock is owned by individual investors due to the fixed dividends.

d. Arrearages are unpaid preferred dividends

16. As a company increases its level of debt while holding assets constant, then ______________.

a. The firm