What value should you assign as the flotation cost of internally generated equity financing? A cost that yields the comp

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

What value should you assign as the flotation cost of internally generated equity financing? A cost that yields the comp

Post by answerhappygod »

What value should you assign as the flotation cost of internally
generated equity financing?
A cost that yields the company’s required rate of return on the
funds utilized
Fifty percent of the external flotation cost of equity
The same cost as that of the external equity financing
A cost of zero
The same cost as that of the debt financing
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply