Which One of These Is Not a Reason Given for Issuing

question 65

Multiple Choice

Which one of these is not a reason given for issuing shares without a rights offering?

• A)The risk of the subscription price exceeding the market price is significant.
• B)Underwriters provide a wider distribution of shares than would be possible with a rights offering.
• C)Rights must be exercised by their original owner or forfeited.
• D)Underwritten issues provide funds faster than rights offerings do.
• E)Investment bankers provide valuable advice.

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