Is it true that the flatter (more nearly horizontal) the demand curve for a particular firms stock

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Is it true that the “flatter” (more nearly horizontal) the demand curve for a particular firm’s stock and the less important investors regard the signaling effect of the offering, the more important the role of investment banks when the company sells a new issue of stock?

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Financial management theory and practice

ISBN: 978-1439078099

13th edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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