1.Explain why the following statement is wrong Issuing new stock increases the number of shares outstanding and...
Fantastic news! We've Found the answer you've been seeking!
Question:
1.Explain why the following statement is wrong "Issuing new stock increases the number of shares outstanding and therefore reduces stock prices, since the stock price is equal to equity value divided by the number of shares outstanding."
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date: