Which of the Following Terms Is Defined as the Group

question 109

Multiple Choice

Which of the following terms is defined as the group of investment banks used to help sell and distribute a new security issue?

• A) Take down
• B) Syndicate
• C) Underwriter's spread
• D) Originating house

---

Definitions:

Cost of Capital

The Cost of Capital is the cost of a company's funds (both debt and equity), or, from an investor's point of view, the required rate of return on a portfolio company's existing securities.

Specific Financing

Financing that is intended for a particular purpose or project, with clear specifications and usually backed by specific collateral.

After-Tax Cost

The expense of any financial obligation or investment after accounting for the effects of taxes.

Project Evaluation

The process of determining the potential successes or failures of a proposed project based on various criteria.