Flotation costs increase the amount of funds that must be raised to finance an investment.

Name: Flotation costs increase the amount of funds that must be raised to finance an investment.
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

Flotation costs are the expenses incurred in the process of raising capital through securities such as stocks or bonds. These costs increase the total cost of capital for a company and thus increase the amount of funds needed for financing an investment.

Flotation Costs Increase the Amount of Funds That Must Be