Which of the following would not normally be considered a "flotation cost? "

Question

Quizplus · Accepted Answer

Flotation costs are the expenses incurred by a company to issue new securities, such as common stock or bonds. Underwriter's spread, legal fees, and printing and engraving expenses are all examples of flotation costs as they are directly related to the process of issuing securities. Dividends, on the other hand, are payments made to shareholders from the company's earnings and are not associated with the issuance of new securities.

Which of the Following Would Not Normally Be Considered a "Flotation