In General,issuing Equity May Not Dilute the Ownership of Existing

question 99

Multiple Choice

In general,issuing equity may not dilute the ownership of existing shareholders if:

• A)the value of new shares is equal to the value of debt.
• B)the new shares are sold at a fair price.
• C)the firm has no debt financing.
• D)the firm uses debt conservatively.
• E)the original owners do not sell their shares.

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Definitions:

Trash Can

Typically a physical container for disposing of garbage, but can also refer to a digital icon for deleting files in computer interfaces.

Deleted

Refers to the act of removing files, data, or entries, making them no longer accessible or retrievable.

Operating System

Software that, after being initially loaded into the computer by a boot program, manages all the other programs in a computer.

Mobile Device

A portable computing device such as a smartphone or tablet that has wireless internet capabilities and various software applications.