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Which of the Following Statements Is FALSE

Question 66

Multiple Choice

Which of the following statements is FALSE?


A) Secondary shares are shares sold by existing shareholders, including the company's founder.
B) If a firm's management is concerned that its equity may be underpriced in the market, by using a rights offering the firm can continue to issue equity without imposing a loss on its current shareholders.
C) In Australia, most SEOs are cash offers.
D) In a rights offer, the firm offers the new shares only to existing shareholders.

Correct Answer:

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