Which of the following statements is generally true concerning the costs of security issue?

Question

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It is generally true that debt is cheaper to issue than equity because debt typically has a lower cost of capital than equity. Underpricing can be a significant cost if the security is sold for less than its true value. Equity is not necessarily cheaper to issue than debt, and there may be economies of scale in security issuance depending on the size and complexity of the offering.

Which of the Following Statements Is Generally True Concerning the Costs