Apart from listing shares on stock markets and issuing IPOs, companies often resort to alternative sources of funding. Consider the following case, and then answer the question that follows: In September 2005, Google raised more than $4 billion by selling additional shares of common stock at $295 per share when its stock was trading at around $303 per share. Morgan Stanley and Goldman Sachs were hired as underwriters for the deal. The previous case is an example of: Shelf registration Public cash offering Private placement A firm decides to raise capital and has made a preliminary decision to sell a block of securities to the entity that makes the highest offer. This procedure is referred to as a Consider the case of Sunny Co.'s public cash offering. Hurray Bank was the underwriter in the deal. Hurray Bank sold 700,000 shares to the public at $11.20 per share. Sunny Co. received $7, 604, 800 from the public offering. What was Hurray Bank's underwriting spread in this deal? Which of the following securities has higher direct issuance costs? Debt securities Common stock