Jensen (1986) argued that:
A) the announcement of a new share issue by a mature company will cause its share price to fall.
B) the announcement of a new share issue by a high-growth company will cause its share price to fall.
C) when debt or hybrid security issues are announced,the fall in share price should be smaller than if it is an announcement of a new share issue.
D) the announcement of a new share issue by a mature company will cause its share price to increase.
Correct Answer:
Verified
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