Which of the following statement is incorrect?
| a |
Cumulative voting is said to be of benefit to minority shareholders because they have the option of placing all of their votes toward one seat during elections. |
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| b |
Callable bond issuers exercise their option to repurchase the bond issue at a predetermined price (i.e., call price) in low interest environment. |
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| c |
A standard arrangement for the orderly retirement of long-term debt calls for the corporation to make regular payments into an irrevocable trustee fund. |
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| d |
A rights offer has the lower issuance costs than a cash offer given a similar amount of fund raising. |
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| e |
Assuming everything else is constant, the price of a stock after the ex-rights date should decrease since the stockholder is losing an option. |
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