The costs associated with the issuance of debt,or flotation costs,are generally of secondary consideration and are typically ignored in cost of debt estimates.

Question

Quizplus · Accepted Answer

Flotation costs are often considered insignificant relative to the overall cost of debt and are usually ignored when calculating the cost of debt because they represent a one-time expense that can be amortized over the life of the debt, making their impact on the overall cost minimal.

The Costs Associated with the Issuance of Debt,or Flotation Costs,are