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According to Signaling Theory, which of the following is most likely to happen to the firm that issues stocks to raise funds? A. Stock price

According to Signaling Theory, which of the following is most likely to happen to the firm that issues stocks to raise funds?

A. Stock price will increase after the issuance.

B. Stock price will be the same after the issuance.

C. Stock price will decrease after the issuance.

D. Stock price will first decrease, then increase.

E. Stock price will first increase, then decrease.

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