Which of the following regarding rights offerings is false?
A) Pure rights offerings are typically cheaper than other types of offers.
B) Rights offerings protect the proportionate interest of existing stockholders.
C) Rights offerings protect against underpricing.
D) Shareholders that choose not to participate in the offering cannot sell their rights to others.
E) The price drop in a rights offering can be greater than in a cash offering.
Correct Answer:
Verified
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