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.
E) None of the above.
Correct Answer:
Verified
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