In General,issuing Equity May Not Dilute the Ownership of Existing

Multiple Choice

In general,issuing equity may not dilute the ownership of existing shareholders if:

A) the value of new shares is equal to the value of debt.
B) the new shares are sold at a fair price.
C) the firm has no debt financing.
D) the firm uses debt conservatively.
E) the original owners do not sell their shares.