Which of the following statements is FALSE?
A) In Australia, most SEOs are cash offers.
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) Secondary shares are shares sold by existing shareholders, including the company's founder.
D) In a rights offer, the firm offers the new shares only to existing shareholders.
Correct Answer:
Verified
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