Issuing equity to raise capital is expensive because in addition to the compensation the financial intermediary requires, there will also be an expense as a result of the
A) government taxes on the equity raise.
B) foreign exchange rate change.
C) fees charged by the Securities and Exchange Commission.
D) underwriting discount.
Answer: D
You might also like to view...
Which of the following is a one of the seven challenges a manager must deal with in the 21st century?
A. sustainability B. ethical standards C. economic stagnation D. globalization E. diversity
A major disadvantage of the scattergraph method of analyzing cost behavior is:
a. It bases its solution on only two observations. b. It results in its analyzed cost being treated as either fixed or variable, based on which type of behavior it more closely resembles. c. Two persons could draw different lines through the data points. d. It enables non-representative points, called outliers, to be identified.
Extraordinary repairs usually are recorded by making a debit to
A) a capital account. B) Repair Expense. C) a contra-asset account. D) an asset account.
Which of the following is NOT involved in a SWOT analysis?
a. internal environmental strengths b. external environmental opponents c. external environmental threats d. internal environmental weaknesses