1the announcement of a debt offering is generally taken as, Ask an Expert

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1."The announcement of a debt offering is generally taken as a signal that the firm's prospects as seen by its management are good; conversely, a stock offering is generally taken as a negative signal."

a. True b. False

2. "Due to information asymmetry, investors tend to believe that the management would issue common stock only if it is under-priced."

a. False b. True

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92863177

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