If a Firm Is Going to Issue Additional Equity by Offering

question 75

Multiple Choice

If a firm is going to issue additional equity by offering existing shareholders the right,or the ability to sell to someone else that right,to purchase the offering then that is called a

• A) general cash offering.
• B) rights offering.
• C) seasonal rights offering.
• D) none of the above.

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Definitions:

Long-Run Cost Function

A representation of the total cost associated with producing a given level of output when all inputs, including capital, can be varied.

Positive Output

A situation in which an economic model or production process results in a positive amount of goods or services being produced.

Supply Function

A mathematical relationship that shows the quantity of a good or service that producers are willing and able to sell at different prices.

Long-Run Cost Function

A graphical or mathematical representation that shows the lowest cost at which a firm can produce any given level of output in the long run, when all inputs are variable.