QUESTION 24 Which statement is correct? When a firm announces a seasoned equity offering markets generally interpret this as a ment believes the firm is overvalued. The stock price drops as a result of this interpretation When a fimm announces a seasoned equity offering, markets generally interpret this as a positive signal that management believes the firm is undervalued. The stock price increases as a result of this interpretation When a firm announces a seasoned equity offering, markets generally interpret this as a negative signal that management believes the firm is overvalued. The stock price increases as a result of this interpretation When a firm announces a seasoned equity offering, markets generally interpret this as a positive signal that lieves the firm is undervalued. The stock price decreases as a result of this interpretation QUESTION 25 Saving for retirement is challenging, Let's start with the assumption than you will live for 30 after retirement. To make those years enjoyable, you think that you will need to have $100,000 per year in retirement income. Fortunately, you have 40 years until you retire. Assume that your Assume that you have 40 years until retirement and have just started your first job. Once you retire, you anticipate that you will live for 30 additional years. Assume that you will require $100,000 per year to support yourself in retirement. All investments that you make will go into and stay in an account that returns 5% per year ( ie, however much you have at retirement will sit in that account and continue to accrue interest on the remaining balance. How much will you have to save each year over the next 40 years to meet your goar Assume that your first investment occurs at the end of your first year of work fyr 1) and that the last of your 40 investments occurs on the last day that you are employed yr 40). For simplicity, assume that your first withdrawal is at the end of your first retirement year fyr 41)