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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 The

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

  • The cost of the SEO far exceeds the cost of the IPO

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

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

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

  • None of the above

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