When experiencing financial distress, a firm may choose to issue equity. Which of the following is INCORRECT regarding the issuing of equity during financial distress?

Select one:

a. Issuing equity provides the firm with additional cash reserves and liquidity.

b. Equity issueance during financial distress signals to the market that the firm is undervalued has a high probability of emerging from financial distress.

c. The stock price at issuance is overvalued and the stock price will tend to fall.

d. Management has an informational advantage over outsiders and will isssue stock when the firm is accurately valued or overvalued.

e. None of the above statements is correct.