Flotation costs discussion board

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Business Finance

Description

Define the term: Flotation Costs.

Should we expect the flotation costs for debt to be significantly lower than those for equity? Why or why not? Please support your answer using supporting information from the chapters in this unit and the course. Do you agree with the positions taken by your classmates? Can you provide counterpoints or insight as to why they may want to reconsider their view of expected flotation costs?

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Explanation & Answer

Attached.

Running Head: FLOTATION COSTS

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Flotation Costs
Name
Institutional Affiliation

FLOTATION COSTS

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Flotation costs are costs incurred by a company that is issuing its securities to the public.
Flotation costs include costs incurred when paying investment bankers, accountants, registration
fees, and printing expenses. Companies need to asses how flotation costs will affect the amou...


Anonymous
I was struggling with this subject, and this helped me a ton!

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