The fees in relation to a smaller capital raising will typically be ______________ than those in relation to a larger capital raising due to the high level of ____________ costs.
A)Lower,fixed
B)Higher,fixed
C)Higher,variable
D)Lower,variable

Question

Quizplus · Accepted Answer

Typically, the fees in relation to a smaller capital raising will be higher than those in relation to a larger capital raising due to the high level of fixed costs involved, such as legal fees, regulatory fees, and underwriting fees. These fixed costs are generally spread over a larger pool of capital in a larger raising, resulting in lower fees as a percentage of the total funds raised.

The Fees in Relation to a Smaller Capital Raising Will