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(a)Discuss the advantages and disadvantages of going public. (7 Marks) (b)Explain why, when underwriting new security offerings, Investment bankers prefer that the securities be underpriced.

(a)Discuss the advantages and disadvantages of going public.(7 Marks)

(b)Explain why, when underwriting new security offerings, Investment bankers prefer that the securities beunderpriced.(5 Marks)

(c)What are the advantages of borrowing from a commercial bank rather than selling securities in financial markets?(8 Marks)

(d)What is the relationship betweenCapital Structureand aCorporations Cost of Capital?(5 Marks).

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