Due to the presence of asymmetric information, every management decision sends a signal to the market. Which signals are associated with equity issuance and debt issuance respectively? a. Both send positive signals.

b. The market is neutral to both.

c. Equity issuance is often associated with negative signal (overvaluation), while debt issuance is often associated with positive signal (management confidence).

d. Equity issuance is often associated with positive signal (undervaluation), while debt issuance is often associated with negative signal (financial distress).

e. Both send negative signals.