Final answer:
Warrants could be issued in conjunction with a debt instrument to entice investor interest and offer equity upside potential. Hence, the correct answer is option (B) Warrants.
Step-by-step explanation:
The correct answer is B) Warrants. Warrants are often issued in conjunction with a debt instrument to entice investor interest and offer equity upside potential. A warrant is a financial instrument that gives the holder the right to purchase a specified number of shares of stock at a predetermined price within a certain time period.
Warrants are frequently used as they give the holder the option to purchase the company's stock at a specific price before expiration. Convertible stock is also common; it allows investors to convert debt into equity at a predetermined rate.