An advantage of a private company becoming a public company is:
A)Separation of ownership and control
B)Increased disclosure
C)The opportunity costs of underpricing a share offer
D)The potential to reduce the cost of equity

Question

Quizplus · Accepted Answer

Going public can reduce the cost of equity by providing access to a larger pool of investors, potentially lowering the required return on equity.

An Advantage of a Private Company Becoming a Public Company