Which statement is correct?
A) The underwriters pay the spread.
B) Taxes are an indirect underwriting cost.
C) Seasoned equity offerings (SEOs) tend to be less costly than IPOs.
D) Straight bonds are more costly to issue than convertible bonds.
E) The total direct cost as a percentage of gross proceeds for an IPO tends to decrease as the size of the offer decreases.
Correct Answer:
Verified
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