Which of the Following Statements Is Correct

question 47

Multiple Choice

Which of the following statements is correct?

• A) Flotation costs under a best-efforts arrangement typically are less for a given new equity issue than the costs associated with an underwritten offering,and the corporation is more certain of getting the needed funds under a best-efforts offering.This is why best efforts deals are most common.
• B) If a firm decides to issue securities through a direct (or private)placement,then the underwriting syndicate that is formed to distribute the securities to the public may,at its discretion,decide either to guarantee or not to guarantee the sale of the securities.
• C) If the demand curve for a firm's stock is relatively flat,the firm will have a more difficult time raising a large amount of new equity funds for expansion than would be true if this demand curve were steeper.
• D) It is possible for a firm to go public,and yet not raise any additional capital.
• E) None of the above is a correct statement.

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Definitions:

Birth Order

Refers to the order a child is born in their family; first-born and second-born are examples of birth order, which psychologists study for its potential impact on personality and behavior.

Dethronement

Refers to the psychological impact experienced by a child when a younger sibling is born, leading to feelings of loss of attention and displacement.

First-born

A term denoting the first child born to a parent or parents, often discussed in the context of birth order effects on personality and development.

Styles of Life

Refers to Alfred Adler's concept of individual patterns of behavior and attitudes that develop as a result of interactions between one's unique environment and genetic disposition.