QUESTIONS Which of the following is NOT a consideration that sometimes holds a firm back from going public? a. High underwriting fees. b. The SEC requires public firms to disclose a large amount of information timely, which can be quite costly Increased liquidity will make the stock price more volatile and hence less predictable. Od. Increased transparency will make it more difficult for the managers to do what they want to do QUESTION 9 Which of the following statements regarding tax treatments of leases is CORRECTI a. Under a capital lease, the lessee's lease payments are fully deductible while the lessor does not enjoy any tax benefits b. Under a capital ease, the lessee's lease payments are fully deductible while the lessor enjoys the depreciation tax shield Oc Under an operating lease, the lessee's lease payments are fully deductible while the lessor does not enjoy any tax benefits d. Under an operating lease, the lessee's lease payments are fully deductible while the lessor enjoys the depreciation tax shield QUESTION 10