Cash offer versus Right offer Ren-Stimpy international is planning to raise fresh equity capital by selling a large new issue of common stock. Ren-Stimpy is currently a publicly traded corporation, and it is trying to choose between an underwritten cash offer and a rights offering (not underwritten) to current shareholders. Ren-Stimpy management is interested in minimizing the selling costs and has asked you for advice on the choice of issue methods. What is your recommendation and why?
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