Lowest direct issue costs as percentage of gross proceeds

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Reference no: EM131878222

1. Which type of offering will generally incur the lowest direct issue costs as a percentage of gross proceeds?

small-sized IPO

large-sized IPO

convertible bonds

SEO

straight bonds

2. The appropriate discount rate that a lessee should use to value a financial lease is the:

lessee’s aftertax weighted average cost of capital.

lessee’s aftertax cost of secured borrowing.

capitalization rate stated in the lease contract. E. current U.S. Treasury T-bill rate.

lessor’s aftertax cost of borrowing.

Reference no: EM131878222

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