Question
Explain why the following statement is wrong. The stock price is equal to the value of equity, divided by shares outstanding. Therefore, companies should avoid
Explain why the following statement is wrong.
The stock price is equal to the value of equity, divided by shares outstanding. Therefore, companies should avoid issuing equity because the number of shares outstanding goes up and thus the stock price would decrease
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Economics Principles and Policy
Authors: William J. Baumol, Alan S. Blinder
12th edition
978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653
