An investment banker's fees are part of the ________ realized for issuing new debt or equity.
A)flotation costs
B)opportunity costs
C)revenues
D)benefits

Question

Quizplus · Accepted Answer

Flotation costs refer to the expenses that a company incurs when issuing new debt or equity, which includes investment banker's fees. Therefore, option A is the best choice. Option B is incorrect since opportunity costs refer to the cost of foregone alternatives. Option C is incorrect since revenues refer to the income earned from sales or services, which is not related to investment banking fees. Option D is incorrect since benefits are the gains or advantages obtained from a particular action or decision, which is not related to investment banking fees.

An Investment Banker's Fees Are Part of the ________ Realized