Which One of the Following Statements Is Correct Concerning the Costs

Multiple Choice

Which one of the following statements is correct concerning the costs of issuing securities?

A) Domestic bonds are generally more expensive to issue than equity IPOs.
B) Abnormal returns are rarely associated with seasoned issues.
C) A seasoned offering is typically more expensive on a percentage basis than an IPO.
D) There tends to be substantial economies of scale when issuing securities.
E) The costs of issuing convertible bonds tend to be less on a percentage basis than the costs of issuing straight debt.