Question 28 (3 points) If management perceives the current market equity value of their shares to be overvalued, then management should: issue new shares later after stock prices have come down so as not to further increase the dilution effect when issuing shares. issue new shares now to take advantage of the market mispricing, but only if they believe the market is momentarily inefficient Owait to issue until prices are undervalued so that their option values increase more rapidly. However, they would only do this if they have the best interest of shareholders in mind. recommend that existing shareholders buy more shares at current market prices because they are so valuable Question 29 (3 points) Optimal capital structure "first" criteria suggests that FLEXIBILITY should be and that the best way to obtain that is with levels of debt and levels of equity high; highlow high: low: high low: high: low low, low, high Question 30 (3 points) Optimal capital structure first criteria suggests that SHAREHOLDER CONTROL should be and that the best way to obtain that is to issue levels of debt and levels of equity Ohlight high low hlachlow, high low, low, low, high low