The Six Components That Make Up the Total Costs of a New

question 16

Multiple Choice

The six components that make up the total costs of a new issues are:

• A) the spread, other direct expenses such as filing fees, indirect expenses such as management time, economies of scale, abnormal returns, and the Green-Shoe option.
• B) the discount, other direct expenses such as filing fees, indirect expenses such as management time, due diligence costs, abnormal returns, and the Green-Shoe option.
• C) the spread, other direct expenses such as filing fees, indirect expenses such as management time, abnormal returns, underpricing, and the Green-Shoe option.
• D) the spread, other direct expenses such as filing fees, economies of scale, due diligence costs, abnormal returns, and underpricing.