Professor Clifford W

question 32

Multiple Choice

Professor Clifford W.Smith, in evaluating issuance costs from underwritten issues, rights issues with standby underwriting and a pure rights issues found that 90% of the issues are underwritten which
Was the most expensive method.This is done because:

• A)investment bankers know more than CFOs and they may buy the issue at an agreed price
• And disburse the funds sooner.
• B)investment bankers can increase the price received by increasing confidence in the issue,
• They will buy the issue at an agreed upon price and disburse the cash sooner.
• C)investment bankers provide other services including price counsel, increase public
• Confidence and provide funds to the issuer sooner.
• D)investment bankers know how to price the issue, would not need to set as low as a price
• As the subscription price and provide price counsel.
• E)None of the above.

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Definitions:

Storage Medium

Any material or device that can be used to store data, such as a hard drive, solid-state drive, or optical disc.

Head Crash

A hardware malfunction in a hard disk drive when the read-write head comes into contact with the spinning disk surface, often resulting in data loss.

Software

Programs and operating information used by a computer to perform specific tasks.

Software Developer

A professional who designs, writes, tests, and maintains computer software or applications.