In Comparison to Debt Issuance Expenses the Total Direct Costs

question 12

Multiple Choice

In comparison to debt issuance expenses the total direct costs of equity issues are:

• A) considerably less because the equity market is more liquid than the debt market.
• B) about the same once cost are amortized over the life of the instrument.
• C) meaningless because debt can not have any indirect costs like equity can.
• D) considerably greater because of the risk of market movement and price change is greater.

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Definitions:

Embryonic Stem Cells

Cells derived from the inner cell mass of an embryo, with the potential to develop into any type of cell in the body.

Differentiation

The process by which cells or tissues undergo a change towards a more specialized form or function, often in context of development.

Adipose Tissue

Connective tissue specializing in fat storage.

Simple Squamous

A single layer of flat cells that contributes to various membranous barriers in the body, such as in the alveoli of lungs or the linings of capillaries.