Question
9.A shareholder has objected to a proposed seasoned equity offering. Why might it be reasonable to make such an objection? Select one: a. Because the
9.A shareholder has objected to a proposed seasoned equity offering. Why might it be reasonable to make such an objection? Select one: a. Because the new shares will dilute earnings b. Because the new shares will dilute voting power c. Because the new shares will dilute the stock price
10.If a shareholder objects to a seasoned equity offering because this person is concerned about dilution of voting power, what can the board of directors do to make this shareholder happy while going ahead with the new issue? Select one: a. Private placement b. Make a deal with a syndicate c. Issue a rights offering d. Issue an overalottment option d. All of the above
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