Quiz Ch 15 – Cost Avoidance in Private Placement
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
In a private placement, which cost is typically avoided?
In a private placement, which cost is typically avoided?
In the case of underpricing an IPO, who primarily bears the majority of the cost?
Which method is considered cost-effective, especially for smaller issuers of securities?
What is the term used to describe the decline in the market price of existing shares following the announcement of a seasoned issue of stock?
What type of offer is Deep Water Marina making by issuing 4,000 shares to its current shareholders before offering them to the general public?
Who has the authority to set the offer price in a Dutch auction?
How do the total direct costs of a debt issue, expressed as a percentage of gross proceeds, typically behave?
What is NOT considered an advantage of shelf registration?
How are prospective investors informed about the potential risks associated with a stock?
What type of event are you taking part in if you choose to buy 100 additional shares out of the 3,000 shares offered by DLK at $16 per share, given that you currently own 400 shares out of the 21,000 outstanding shares?