Which of the following statements about IPOs is true?

I.	An IPO provides the firm with publicly traded shares that can be used as currency in future acquisitions.
II.	A firm can increase its leverage through an IPO, thereby obtaining higher tax shields.
III.	An IPO can enable the firms original owners to diversify their portfolio.
IV.	A firm with publicly traded equity can raise more equity by conducting an IPO.

		Statement II only
		Statements I and III only
		Statement III only
		Statements I, II, III, and IV
		Statement I only
		Statement IV only