Firms avoid seasoned equity offering to raise external funds

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Reference no: EM131314084

Firms avoid seasoned equity offerings to raise external funds and use financial leverage instead. Why?

A) new equity dilutes the current dividends per share of the firm

B) the bond market is more efficient than the equity market

C) coupon payments are tax deductible

D) a and b

E) a and c

Reference no: EM131314084

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