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

question 101

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

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To change something into a different form, function, or state.

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