answers to question 20 and 21 20. The correct statement about SEO...

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Finance

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20. The correct statement about SEO includes: 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 at a risk free rate C. Like stock buyback, SEO issuing can also be explained by the signaling theory D. There is also a winner's curse related to SEO E. If management believes equity is undervalued, they would choose to conduct SEO. 21 (challenging question) A 3-for-1 stock split is the same as a stock dividend: A. 100% B. 50% C. 150% D. 200% E. 300%

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