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Everything else equal, if a firm with favorable future prospects raises funds by issuing new shares of common stock, _____. a. the price of its

Everything else equal, if a firm with favorable future prospects raises funds by issuing new shares of common stock, _____.

the price of its stock will increase when future profits are realized by the firm

its debt/assets ratio should increase

its taxable income should decrease

its marginal bankruptcy-related costs should increase

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