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Multiple answeers Question 6 4 pts Company A: Issues 10 Million shares of stock at $10 per share. Company B: Issues 1 Million shares of
Multiple answeers
Question 6 4 pts Company A: Issues 10 Million shares of stock at $10 per share. Company B: Issues 1 Million shares of stock at $100 per share. Assume that all other fundamental aspects of these businesses are identical. An investor looking to invest $1,000 would likely have the following preferences? (Select ALL that apply): The investor would prefer to purchase shares in company A since they are cheaper Since stock represents fractional ownership in each business, the investor should have no preference (assuming transactional costs are equal), since investments in each company are essentially identical opportunities The opportunity cost of investing in Company B is higher since the stock price is higher Company B represents a better value for moneyStep by Step Solution
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