Bivariate regression analysis is a predictive analysis technique in which two variables only are in the predictive model; one is an independent variable and the other a dependent variable

Which of the following is the explanation of why the market generally reacts negatively to the announcement of a SEO offered in the pecking order hypothesis?

a. Management is taking a self-serving action. b. Management is signaling that the shares are overpriced. c. Creditors are forcing the firm to increase its equity base. d. The firm is revealing that it has not generated as much earnings as the market expected.

Why should the price of the option component be "equal to the difference between the dual currency bond price and its bond component"?

What will be an ideal response?