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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Definitions:

Shareholder Value

The value delivered to shareholders as a result of the company's ability to generate earnings and increase its share price.

Resistance To Change

The opposition or reluctance of individuals or groups to alter their behavior, procedures, or way of thinking despite the introduction of new ideas or changes.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors and interactions.

Important Factor

A critical element or aspect that significantly influences outcomes or decisions.