Which of the Following Best Represents a Benefit of a Rights

question 32

Multiple Choice

Which of the following best represents a benefit of a rights offering?

• A)Rights offerings increase return on equity.
• B)Rights offerings substantiate higher debt-to-equity ratios.
• C)Rights offerings have lower margin requirements.
• D)None of these options

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Definitions:

Relative Risk

A measure in epidemiology that quantifies the risk of a certain event happening in one group compared to its occurrence in another group.

Defective

Pertaining to a product or item that fails to meet the quality or performance standards, often due to manufacturing errors or flaws.

Supplier

An entity that provides goods or services to another entity, typically in a supply chain or business context.

Insider Information

Privileged, confidential information about the operations, financial condition, or prospects of a company, known by individuals within the company and not available to the public.