Direct issuance costs are
A)higher for common stock than for preferred stock issues
B)dependent on the quality of the issue
C)dependent on the size of the issue
D)all of these are correct

Question

Quizplus · Accepted Answer

Direct issuance costs can vary depending on multiple factors such as the type of stock being issued (common or preferred), the quality of the issue (credit rating, market demand, etc.), and the size of the issue (larger issues may have higher costs due to additional legal and regulatory requirements). Therefore, option D - all of these are correct - is the most appropriate answer.

Direct Issuance Costs Are