Fundamentals of Corporate Finance (4th Edition) (Berk  DeMarzo & Harford  The Corporate Finance Series)
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Textbook Question
Chapter 1, Problem 19P

Explain why the bid-ask spread is a transaction cost.

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Explain the following terms, Bid Rate and Ask rate.
Define bid-ask spread
Explain the difference between market-based transfer prices and cost-based transfer prices.
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