The best way to adjust for the existence of flotation costs is to add their %age cost to the WACC.

Name: The best way to adjust for the existence of flotation costs is to add their %age cost to the WACC.
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Quizplus · Accepted Answer

Flotation costs should be incorporated into the project's initial cash outflows rather than adjusting the WACC, as adding them to the WACC can distort the discount rate and lead to incorrect investment decisions.

The Best Way to Adjust for the Existence of Flotation