inal answer:
The initial issuance of a detachable warrant results in an increase in stockholders' equity, as it is sold to raise capital for the company and provides the holder with the right to purchase company stock at a set price.
Step-by-step explanation:
The initial issuance of a detachable warrant is associated with the raising of capital for a firm. When a company issues a detachable warrant, it allows the warrant holder to purchase a certain number of shares of stock at a specified price before the warrant expires.
Since warrants are a form of derivative that provides the right but not the obligation to buy the company’s stock, their issuance typically results in an increase in stockholders' equity because they are often sold together with other securities like bonds or preferred stock, thereby raising funds for the company.