Firms Are More Willing to Issue New Stock in a Secondary

question 46

Multiple Choice

Firms are more willing to issue new stock in a secondary stock offering when the market price of their outstanding shares is relatively

• A)high.
• B)low.
• C)either high or low, depending on the overall market.
• D)None of these are correct.

---

Definitions:

Sales to Customers

The transactions where goods or services are sold and delivered to the buyer, generating revenue for the company.

Accounts Payable

The amounts owed by a company to its suppliers or creditors for goods or services received but not yet paid for.

Cash Inflows

Money received by a business from various sources, including sales, investments, financing, etc.