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What do underwriters do? Why is underpricing a cost to the issuing firm? Why should a financial manager be concerned about underpricing? In the aggregate,

What do underwriters do? Why is underpricing a cost to the issuing firm? Why should a financial manager be concerned about underpricing?

In the aggregate, debt offerings are much more common than equity offerings and typically much larger as well. Why? Why are the costs of selling equity so much larger than the costs of selling debt?

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