Construct a simple example to show the following:
a. Existing shareholders are made worse off when a company makes a cash offer of new stock below the market price.
b. Existing shareholders are not made worse off when a company makes a rights issue of new stock below the market price even if the new stockholders do not wish to take up their rights.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.