In terms of costs of issuing equity, Professor Clifford W.Smith ﬁnds that the ranking of methods, from cheapest to most expensive, is:

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Professor Clifford W.Smith's research suggests that the cheapest method of issuing equity is a pure rights issue, followed by a rights issue with standby underwriting, and then an equity issue with underwriting. Choice B includes the correct ranking of these methods, while the other choices do not. The other options include preferred stock and debt issuances, which are not mentioned in Professor Smith's ranking.

In Terms of Costs of Issuing Equity, Professor Clifford W