As the size of a financing issue increases, the [blank] usually decreases on a percentage basis.

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Quizplus · Accepted Answer

The flotation cost of the issue usually decreases on a percentage basis as the size of the financing issue increases. This is because a larger issue size allows for economies of scale, which reduces the cost of issuing and marketing the securities. However, the cost of equity may or may not decrease as the size of the financing issue increases, and the effective tax rate is not directly related to the size of the financing issue.

As the Size of a Financing Issue Increases, the [Blank]