The amount of common stock or debt that a company needs to


Which of the following is the correct expression for the amount of common stock or debt that a company needs to issue after taking into account the flotation costs? Amount of issue = (Net proceeds + Other flotation costs in dollars) / (1 – Percentage flotation costs) Amount of issue = (Net proceeds + Other flotation costs in dollars) / (1 + Percentage flotation costs) Amount of issue = (Net proceeds – Other flotation costs in dollars) / (1 – Percentage flotation costs) Amount of issue = (Net proceeds – Other flotation costs in dollars) / (1 + Percentage flotation costs) Amount of issue = (Net proceeds + Other flotation costs in dollars) × (1 – Percentage flotation costs)

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Financial Management: The amount of common stock or debt that a company needs to
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