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The Six Components That Make Up the Total Costs of New

Question 30

Multiple Choice

The six components that make up the total costs of new issues are:


A) the spread; other direct expenses such as filing fees; indirect expenses such as management time; economies of scale; abnormal returns and the Green Shoe option.
B) the discount; other direct expenses such as filing fees; indirect expenses such as management time; due diligence costs; abnormal returns and the Green Shoe option.
C) the spread; other direct expenses such as filing fees; indirect expenses such as management time; abnormal returns; underpricing and the Green Shoe option.
D) the spread; other direct expenses such as filing fees; economies of scale; due diligence costs; abnormal returns and underpricing.
E) None of the above.

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