Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
9th Edition
ISBN: 9781259277214
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 15, Problem 7QP
Summary Introduction

To find: The flotation costs’ percentage.

Introduction:

The publically traded company incurs certain costs at the time of issuing new securities, and it also includes various expenditures like registration fees, legal fees, and underwriting fees. Thus, these costs are referred to as the flotation costs.

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