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If a firm with favorable prospects sells new shares, _____. A. the retained earnings of the firm will decrease B. the debt/assets ratio of the

If a firm with favorable prospects sells new shares, _____.

A. the retained earnings of the firm will decrease

B. the debt/assets ratio of the firm will increase

C. the tax payable by the firm will decrease

D. the marginal bankruptcy-related costs of the firm will increase

E. the value of the firm's stock will increase.

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