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In a rights offering, the underwriter offers the investing public a certain number of shares at a certain price. amount of debt in the capital

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In a rights offering, the underwriter offers the investing public a certain number of shares at a certain price. amount of debt in the capital structure increases by the amount of the rights offering existing stockholders are given the first opportunity to purchase new shares in proportion to their current ownership position. total equity remains constant while the number of shares of common stock outstanding increases

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