When setting the price of a new share issue, a corporation does not need to consider
A)future net income.
B)expected dividend rate.
C)current financial position.
D)future trading on the secondary market.

Question

Quizplus · Accepted Answer

The price of a new share issue is primarily determined by factors like future net income, expected dividend rate, and the company's current financial position. Future trading on the secondary market is speculative and not a direct consideration for setting the initial price of a new share issue.

When Setting the Price of a New Share Issue, a Corporation