Public Issues versus Direct Financing Which of the following are characteristics of public issues, and which are characteristics of direct fi nancing?

a. SEC registration required.

b. Higher interest cost.

c. Higher fi xed cost.

d. Quicker access to funds.

e. Active secondary market.

f. Easily renegotiated.

g. Lower fl otation costs.

h. Regular amortization required.

i. Ease of repurchase at favorable prices.

j. High total cost to small borrowers.

k. Flexible terms.

l. Less intensive investigation required. LO.1