Which of the Following Is a Reason Why the Stock

question 184

Multiple Choice

Which of the following is a reason why the stock price of a firm might drop when a seasoned equity issue is announced?

• A) Managers know the stock is overvalued, so they are selling it while the price is low.
• B) Issuing new equity may indicate the firm has too little debt or excess liquidity.
• C) Stockholders are just acknowledging the fact that if the firm were to issue debt instead, existing shareholders would have to share the gain with the new investors.
• D) It is expensive to issue securities and stockholders are just recognizing the loss in value the firm will incur by paying out this money.
• E) There may be a simple supply and demand problem, that is, the additional share will be in great demand and price usually drops when demand rises.

Evaluate the prevalence and impact of stereotypes and age-related biases in the workplace.

Comprehend the dynamics of self-fulfilling prophecy and its implications in organizational settings.

Understand the significance of halo effects in performance appraisals.

Recognize the importance of self-awareness and empathy in controlling projection biases.

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Definitions:

Common Law Marriage

A legally recognized union that occurs when a couple lives together for a period of time and holds themselves out to friends, family, and the community as being married, but without ever going through a formal ceremony or obtaining a marriage license.

Domestic Partner Benefits

Employee benefit policies that extend health insurance and other perks to domestic partners, akin to those traditionally reserved for spouses.

Case Management

A collaborative process of assessment, planning, facilitation, and advocacy for options and services to meet an individual's holistic needs through communication and available resources to promote quality cost-effective outcomes.

HMO

A Health Maintenance Organization, a type of health insurance plan that limits coverage to care from doctors who work for or contract with the HMO.