What are the advantages of a rights offer over a cash offer when issuing new shares?
A) It enables a firm to attract new investors from outside its current owners.
B) It enables a firm to access new sources of capital to fund its growth.
C) It enables a firm to attract new investors by offering them a windfall from the difference between the price of the issued shares and the price of shares after the offering.
D) It enables a firm to issue equity without imposing a loss on current shareholders.
Correct Answer:
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