Flotation cost is the
A) cost of holding stock on hand.
B) cost of issuing new debt.
C) cost of issuing new stock.
D) sales price of common stock.

Name: Flotation cost is the A) cost of holding stock on hand. B) cost of issuing new debt. C) cost of issuing new stock. D) sales price of common stock.
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Question

Quizplus · Accepted Answer

Flotation cost refers to the cost incurred by a company in issuing new stock. It includes expenses such as underwriting fees, legal fees, printing fees, and accounting fees.

Flotation Cost Is the