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?
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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.
A CD/$ bank trader is at present quoting a small figure bid-ask of 35-40, while the rest of the market is trading at CD1.3436-CD1.3441. What is implied regarding the trader's beliefs by his prices?The trader have to think the Canadian dollar wi
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