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1. According to Signaling theory, why does the stock price decline when a new stock offering is announced? 2. According to Modigliani and Miller theory,

1. According to Signaling theory, why does the stock price decline when a new stock offering is announced?

2. According to Modigliani and Miller theory, what happens to the value of a company when additional debt is issued? (assume corporate taxes exist)

3. With an optimal capital structure, what is maximized and what is minimized?

4. According to Windows of Opportunity theory, when will a company issue stock?

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