Flotation costs affect the cost of raising the capital

How do flotation costs affect the cost of raising the capital when a company issues new securities?

E

Expert

Verified

Flotation cost will increase the cost of raising the capital when a company will issue new securities. If the company gets a smaller amount of the proceeds from the new securities which are issued, the flotation cost will be more.

   Related Questions in Financial Management

©TutorsGlobe All rights reserved 2022-2023.