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.
Correct Answer:
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