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All of the following are advantages of rights offerings except:

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All of the following are advantages of rights offerings except:

 Options:

A. the position of current shareholders is protected
B. a rights offering provides the firm with a built-in securities market
C. more interest may be generated in the market
D. the dollar value of rights traded on exchanges is very high

 

The Correct Answer Is:

  • D. the dollar value of rights traded on exchanges is very high

 

Conclusion

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