Which of the Following Statements Is FALSE

question 60

Multiple Choice

Which of the following statements is FALSE?

• A) More often than not, firms return to the equity markets and offer new shares for sale, a type of offering called a seasoned equity offering (SEO).
• B) Usually, profitable growth opportunities occur throughout the life of a firm, and in some cases it is not feasible to finance these opportunities out of retained earnings.
• C) When a firm issues stock using an SEO, it follows many of the same steps as for an IPO. The main difference is that a market price for the stock already exists, so the price-setting process is not necessary.
• D) A firm's need for outside capital usually ends at the IPO.

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