CFOs are more likely to issue new shares of equity when
A)their firm's stock price is relatively high.
B)the market interest rates are high.
C)their firm's stock price is relatively low.
D)both B and C.

Question

Quizplus · Accepted Answer

CFOs are more likely to issue new shares of equity when their firm's stock price is relatively high because it allows the company to raise more capital per share, making it a more efficient way to generate funds compared to issuing shares when the stock price is low.

CFOs Are More Likely to Issue New Shares of Equity