. How would a firms decision to pay out a higher percentage of its earnings as dividends affect each of the following? 1. The value of its long-term warrants 2. The likelihood that its convertible bonds will be converted 3. The likelihood that its warrants will be exercised b. If you owned the warrants or convertibles of a company, would you be pleased or displeased if it raised its payout rate from 20% to 80%? Why?