A Study by Lee, Lockhead, Ritter, and Zhao That Examined

Multiple Choice

A study by Lee, Lockhead, Ritter, and Zhao that examined the underwriting discount and other direct costs of going public with a debt or equity offering, found:

A) the direct expenses are higher for equity than debt offerings.
B) substantial economies of scale are prevalent.
C) underpricing, on average, is similar in magnitude to total direct expenses.
D) All of the above.
E) None of the above.