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 choices are incorrect.

Question

Quizplus · Accepted Answer

When a firm believes its stock is undervalued, it is less likely to issue additional shares because doing so would dilute the value of existing shares at a price that is considered too low. Instead, firms might prefer to buy back shares or seek alternative financing options.

Which of the Following Is Incorrect