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Significant risk of abc defaulting

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ABC corporation is approaching financial distress, i.e., its bond holders believe there is a significant risk of ABC defaulting on its upcoming interest payments to them. ABC's CFO suggests offering these bond holders some equity warrants to ease their concerns.

In a 5-7 paragraph essay, would you support this course of action? Specify any circumstances, scenarios, or underlying assumptions upon which your advice is based.

Reference no: EM133114687

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