The cost of internal equity is cheaper than the cost of external equity. Which of the following statements is (are) correct?
I. External equity may incur expenses that are deducted from the capital received for the sale of the

security.

II. Corporations generally discount the price of the securities that are sold to the public in order to raise

capital

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.


A

Business

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