In the chapter’s opening vignette, Chrysler Corporation argued that there was little risk in the government guarantee of Chrysler’s debt because Chrysler also was offering a senior claim of Chrysler’s assets to the government. In light of this, Chrysler’s warrants appear to have been a free gift to the U.S. government that should have been returned to Chrysler in 1983. Evaluate this argument.

AppendixLO1