In general, does the market view the announcement of a new stock issue to be a good

Question:

In general, does the market view the announcement of a new stock issue to be a good signal? Does the signaling theory lead to the same conclusions regarding the optimal capital structure as the trade-off-theory and/or the MM theory?

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: