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Given an efficient market, a rights offer Multiple Choice provides a means for current shareholders to sell their shares for more than their actual worth.
Given an efficient market, a rights offer
Multiple Choice
- provides a means for current shareholders to sell their shares for more than their actual worth.
- provides a means of creating value for only those who exercise their rights.
- increases the wealth of the firm's current shareholders.
- imposes losses on the firm's current shareholders.
- neither creates nor destroys shareholder value.
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