Why Should Managers Assume They Will Receive a Fair Price

question 110

Multiple Choice

Why should managers assume they will receive a fair price for any new shares that their firm issues?

• A) All new shares must sell at par value.
• B) All new shares will sell as positive NPV investments.
• C) Financial markets are highly competitive.
• D)New share prices are highly regulated.

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Adolescence

The transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Disability

A physical or mental condition that limits a person's movements, senses, or activities, affecting their daily life and participation in society.

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An emotional state resulting from the recognition or perception of having done something wrong or failed to do something right.

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