Flotation costs the corporation is considering an equity


Question: Flotation Costs. The Corporation is considering an equity issue to finance a new space station. A total of $10 million in new equity is needed. If the direct costs are estimated at 6 percent of the amount raised, how large does the issue need to be? What is the dollar amount of the flotation cost?

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Finance Basics: Flotation costs the corporation is considering an equity
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