Which of the following equations is used to compute the dollar amount of common stock or debt that a company must issue after taking into account the flotation costs?
a. Amount of issue $= ($ Net proceeds - Other flotation costs in dollars $) / ( 1 -$ Flotation costs in decimal form $)$
b. Amount of issue $= ($ Net proceeds + Other flotation costs in dollars $) / ( 1 -$ Flotation costs in decimal form $)$
c. Amount of issue $= ($ Net proceeds + Other flotation costs in dollars $) / ( 1 +$ Flotation costs in decimal form $)$
d. Amount of issue $= ($ Net proceeds - Other flotation costs in dollars $) \times ( 1 +$ Flotation costs in decimal form $)$
e. Amount of issue $= ($ Net proceeds + Other flotation costs in dollars $) \times ( 1 -$ Flotation costs in decimal form $)$

Question

Quizplus · Accepted Answer

The Answer of Which of the following equations is used to compute the dollar amount of common stock or debt that a company must issue after taking into account the flotation costs?
a. Amount of issue $= ($ Net proceeds - Other flotation costs in dollars $) / ( 1 -$ Flotation costs in decimal form $)$
b. Amount of issue $= ($ Net proceeds + Other flotation costs in dollars $) / ( 1 -$ Flotation costs in decimal form $)$
c. Amount of issue $= ($ Net proceeds + Other flotation costs in dollars $) / ( 1 +$ Flotation costs in decimal form $)$
d. Amount of issue $= ($ Net proceeds - Other flotation costs in dollars $) \times ( 1 +$ Flotation costs in decimal form $)$
e. Amount of issue $= ($ Net proceeds + Other flotation costs in dollars $) \times ( 1 -$ Flotation costs in decimal form $)$

Which of the Following Equations Is Used to Compute the Dollar