The advantage of a rights offering is

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All of the options listed are advantages of a rights offering. Current shareholders are protected against dilution because they have the right to purchase additional shares before they are offered to the general public. The firm has a built-in market of knowledgeable investors since the offering is made exclusively to current shareholders. Additionally, distribution costs are usually lower because the offering is targeted to a specific group of investors.

The Advantage of a Rights Offering Is