Proceeds from an issue of debt securities having stock warrants should not be allocated between debt and equity features when

Proceeds from an issue of debt securities having stock warrants should not be allocated between debt and equity features when



a. the market value of the warrants is not readily available.
b. exercise of the warrants within the next few fiscal periods seems remote.
c. the allocation would result in a discount on the debt security.
d. the warrants issued with the debt securities are nondetachable.


Answer: the warrants issued with the debt securities are nondetachable


Learn More :