A listed company: (a) can generally raise as much new equity as it wishes through a private placement (b) can expect its share price to rise if it conducts a rights issue (c) will successfully conduct a rights issue if the subscription price is set above the current share price (d) can rapidly increase its equity capital through dividend reinvestment schemes. (e) None of these are correct.
A listed company: (a) can generally raise as much new equity as it wishes through a private placement (b) can expect its share price to rise if it conducts a rights issue (c) will successfully conduct a rights issue if the subscription price is set above the current share price (d) can rapidly increase its equity capital through dividend reinvestment schemes. (e) None of these are correct.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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8. A listed company:
(a) can generally raise as much new equity as it wishes through a private placement
(b) can expect its share price to rise if it conducts a rights issue
(c) will successfully conduct a rights issue if the subscription price is set above the
current share price
(d) can rapidly increase its equity capital through dividend reinvestment schemes.
(e) None of these are correct.
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