Question
1.Explain why the following statement is wrong Issuing new stock increases the number of shares outstanding and therefore reduces stock prices, since the stock price
1.Explain why the following statement is wrong "Issuing new stock increases the number of shares outstanding and therefore reduces stock prices, since the stock price is equal to equity value divided by the number of shares outstanding."
Step by Step Solution
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Step: 1
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
