Historically, underpricing occurred more frequently in IPOs of ___________ companies. Select one: larger b. more well-known c. technology d. highly…

Historically, underpricing occurred more frequently in IPOs of ___________ companies.

Select one:

a. larger

b. more well-known

c. technology

d. highly speculative

e. pharmaceutical

The costs of issuing securities include

Select one:

a. underallotment costs.

b. underwriting spread.

c. sunk costs.

d. default costs.

e. all of the above.

Yonkers Inc. is issuing new common shares in a rights offer in order to raise $10 million for a new project. The subscription price for each new share is $10. The firm currently has 2 million common shares outstanding, each priced at $25 in the market. What is the price of each right?

Select one:

a. $1

b. $2

c. $5

d. $10

e. $15