Empirical Evidence Suggests That Upon Announcement of a New Equity

Empirical evidence suggests that upon announcement of a new equity issue, current share prices generally:

A) drop, perhaps because the new issue reflects management's view that ordinary equity is
Currently overvalued.
B) remain about the same since an efficient market anticipates a new equity issue.
C) increase, perhaps because the issues are associated with positive NPV projects.
D) increase, because the market supply is always less than demand.
E) increase, because underwriters exercise their green shoe option.