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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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