Question: I would appreciate your answer. Question Issuing equity can be perceived as a negative signal because at the time of equity issue: A:The firm is

I would appreciate your answer.

Question

Issuing equity can be perceived as a negative signal because at the time of equity issue:

A:The firm is letting go of cheaper debt.

B:The firm is growing too fast.

C:Mangers will use equity to pay back debt.

D: Investors think that managers consider equity as over or maximally priced.

E:Investors think that managers consider equity as under priced.

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