Floatation costs for debt vs. equity are less

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1. Floatation costs for debt vs. equity are less for all but one of the following reasons?

a. No risk for bond investors

b. Scheduled cash flow streams

c. Often issued for replacement of debt that is simply maturing

d. Less legal preparation and far less “road show” type of investment bank work

2. Which one of the following is not included as an input for the Black Scholes option pricing model?

standard deviation

time to maturity

exercise price

par value

risk-free interest rate

Reference no: EM131900630

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