Flotation costs include all of the following, except:
A) cost of printing shares
B) legal and accounting costs
C) investment banker fees
D) management expense

Question

Quizplus · Accepted Answer

Flotation costs refer to the expenses incurred in issuing new securities, such as legal and accounting fees, investment banker fees and underwriting fees. The cost of printing shares is not typically considered a significant expense in the issuance of new securities. Management expenses also do not fall under the category of flotation costs.

Flotation Costs Include All of the Following, Except