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Posts: 190
A month ago
What are the advantages of a rights offer over a cash offer when issuing new shares?

▸ It enables a firm to attract new investors by offering them a windfall from the difference between the price of the issued stock and the price of stock after the offering.

▸ It enables a firm to issue equity without imposing a loss on current shareholders.

▸ It enables a firm to access new sources of capital to fund its growth.

▸ It enables a firm to attract new investors from outside its current owners.
Textbook 

Fundamentals of Corporate Finance

Edition: 2nd
Authors:
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Posts: 249
A month ago
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It enables a firm to issue equity without imposing a loss on current shareholders.
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A month ago
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