Which One of the Following Statements Concerning Debt Issues Is

question 68

Multiple Choice

Which one of the following statements concerning debt issues is correct?

• A)A prospectus is required for public issues of equity but not for debt.
• B)The only difference between a term loan and a private placement is the size of the issue.
• C)Direct long-term loans must be registered with the SEC.
• D)Firms often pay higher interest rates on term loans than on public issues of debt.
• E)The flotation costs of issuing debt tend to be more expensive than for issuing equity.

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Definitions:

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A cognitive process leading to the selection of a belief or a course of action among several possible alternative options.

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The external opening of the urethra, through which urine exits the body.

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