QUESTION 11 Which of the following is NOT true regarding the "signaling effect of equity? None of the choices are true regarding the "signaling effect of equity Managers would not issue additional equity if they thought the current stock price was less than the true value of the stock (given their inside elr inside Information) All of the choices are true regarding the signaling effect of equity. Managers know the firm's future prospects better than investors. Investors view the issuance of additional stock as a negative signal and the stock price falls