A firm just announced the issue of 100,000 shares through a new SEO. Which one of the following statements is more correct?

Multiple Choice

a.The cost of the SEO far exceeds the cost of the IPO

b.The companys stock price on average declines because the SEO indicates the firm has run out of profitable investments

c.The companys stock price on average declines because the company is likely overvalued

d.The companys stock price on average declines because issuing public securities increases the risk of bankruptcy

e.None of the above