This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: How does the size of an issue affect the fees charged by underwriters? (Read 70 times)

cagreen833

  • Hero Member
  • *****
  • Posts: 544
on: Jul 9, 2019
How does the size of an issue affect the fees charged by underwriters?
◦ Large issues have substantially larger direct costs and, thus, must charge a larger spread in order to be profitable for the underwriter.
◦ Although large issues generally have a smaller spread, the large number of shares released means that the total fees are somewhat larger than for smaller issues.
◦ Large issues generally have a similar spread to small issues and thus attract much greater fees.
◦ Large issues have a reduced spread, which means that the total fees are generally the same as for smaller issues.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by cagreen833 on Jul 9, 2019

sarah_brady415

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 55% of students answer this correctly


cagreen833

  • Member
  • Posts: 544
Reply 2 on: Jul 9, 2019
Wow, this really help

dantucker

  • Member
  • Posts: 346
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Interaction web of factors that might influence locust population size. Interaction web of factors that might influence locust population size.
Species richness increases with island size. Species richness increases with island size.
During the Pullman strike in Chicago, workers protesting wage cuts did $340,000 in property damage, During the Pullman strike in Chicago, workers protesting wage cuts did $340,000 in property damage,
The Effect of Group Size on Relationships The Effect of Group Size on Relationships
Size of Particles Size of Particles
Leadership is not about size, it's about knowledge and wisdom Leadership is not about size, it's about knowledge and wisdom
Video: Origin of organelles Animation

For a complete list of videos, visit our video library