When it comes to exchange offers, some are viewed quite favorably by shareholders, but others less so. Generally speaking, exchange offers that

• A. increase leverage are viewed favorably, while those that decrease leverage are viewed unfavorably.
• B. exchange debt for common equity would be viewed unfavorably, while those that exchange debt for preferred equity would be viewed favorably.
• C. decrease leverage are viewed favorably, while those that increase leverage are viewed unfavorably.
• D. exchange equity for debt would be viewed favorably, while the exchange of common equity for preferred equity would be viewed unfavorably.