Your firm announces a seasoned equity offering and the firm’s stock price decreases by 2%. Your...
Your firm announces a seasoned equity offering and the firm’s stock price decreases by 2%. Your co-worker asks if that 2% decrease is a part of the cost of doing an SEO. Which response could be correct?
| Yes, because our management is likely to spend the newly-raised capital on poor projects. |
| No, because the price decrease reflects a correction of our stock price to its true value. |
| Both could be correct. |
| Neither could be correct. |
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Your firm announces a seasoned equity offering and the firm’s
stock price decreases by 2%. Your...
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