Big Old Serious Supermarket (BOSS) is a retail company that manages a chain of supermarkets, operating solely in the US market. The company has issued common stock equity and bonds to finance its operations. Those are its only sources of capital. The company’s shares are publicly traded in the New York Stock Exchange (NYSE). BOSS announced its intention to issue new shares via a seasoned equity offering (SEO). Upon the announcement, the market price of its stock dropped by 3%. why this drop happened? (use the pecking order theory of capital structure)
Big Old Serious Supermarket (BOSS) is a retail company that manages a chain of supermarkets, operating solely in the US market. The company has issued common stock equity and bonds to finance its operations. Those are its only sources of capital. The company’s shares are publicly traded in the New York Stock Exchange (NYSE). BOSS announced its intention to issue new shares via a seasoned equity offering (SEO). Upon the announcement, the market price of its stock dropped by 3%. why this drop happened? (use the pecking order theory of capital structure)
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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Big Old Serious Supermarket (BOSS) is a retail company that manages a chain of supermarkets, operating solely in the US market. The company has issued common stock equity and bonds to finance its operations. Those are its only sources of capital. The company’s shares are publicly traded in the New York Stock Exchange (NYSE).
BOSS announced its intention to issue new shares via a seasoned equity offering (SEO). Upon the announcement, the market price of its stock dropped by 3%. why this drop happened? (use the pecking order theory of capital structure)
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