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The Amount Raised to Finance a Project When New Securities

Question 266

Multiple Choice

The amount raised to finance a project when new securities are issued can be defined as the:


A) Total value of the new securities issued multiplied by the quantity of 1 minus the flotation cost expressed as a %age of the amount raised.
B) Cash needed to fund the project excluding any flotation costs.
C) Cash needed to fund the project multiplied by the quantity of 1 minus the flotation cost expressed as a %age.
D) Total market value of the new securities minus the flotation cost.
E) Outside amount needed for the project divided by the quantity of 1 minus the flotation cost expressed as a %age of the amount raised.

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