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A company is planning to raise fresh equity capital by selling a large new issue of common stock.The company is a publicly traded corporation and

A company is planning to raise fresh equity capital by selling a large new issue of common stock.The company is a publicly traded corporation and it is trying to choose between an underwritten cash offer and a rightsoffering (not underwritten) to current shareholders.The company is interested in minimizing the selling costs and has asked you for advice on the choice of issue methods.What is your recommendation and why?

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