Which of the following is incorrect?
A)Most firms would want to sell additional shares of common stock if they feel their stock is undervalued.
B)Most firms would not want to repurchase shares of common stock if they feel their stock is overvalued.
C)It is important for financial managers to understand market efficiency because it helps them understand how their stock prices will react to different types of decisions and news announcements.
D)None of these statements are incorrect.

Question

Quizplus · Accepted Answer

Firms typically do not want to sell additional shares if they believe their stock is undervalued, as it would mean issuing shares at a lower price than they believe is fair, potentially diluting existing shareholders' value.

Which of the Following Is Incorrect