Which One of the Following Statements Is Correct Concerning the Costs

question 322

Multiple Choice

Which one of the following statements is correct concerning the costs of issuing securities?

• A) Domestic bonds are generally more expensive to issue than equity IPOs.
• B) The total direct costs of an equity IPO is typically 15 percent of the amount raised.
• C) A seasoned offering is typically more expensive on a percentage basis than an IPO.
• D) There tend to be substantial economies of scale when issuing securities.
• E) The costs of issuing bonds can be reduced to zero with the use of a "Red Shoe" provision.

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