Which one of the following statements best describes a plausible reason for a decline in the market price of a stock when new equities are issued?
a) Managers issue new equity shares when the debt-equity ratio is too high.
b) Managers tend to issue equity only when they have no prospective positive net present value projects.
c) Managers tend to issue new equity shares when a firm has excess liquidity.
d) Managers of firms issue new equity shares only when the outstanding shares are undervalued in the market.