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Which Statement Is True

Question 47

Multiple Choice

Which statement is true?


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

Correct Answer:

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