3. The correct statement about SEO includes: C. a. Stock price tend to go up when SEO is issued b. It is one of the important ways for a firm to raise debt Like stock buyback, SEO issuing can also be explained by the signaling theory d. There is also a winner's curse related to SEO If management believes equity is undervalued, they would choose to conduct SEO. e. 4. A 3-for-1 stock split is the same as a stock dividend: a. 100% b. 50% c. 150% d. 200% E. 300% 5 . . A taxable corporate bond has a yield of 8% and a municipal bond has a yield of 6%. At what tax rate would you be indifferent between the two bonds? a. 15% b. 50% 10% c. d. 25% e. 4.8%