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Flotation costs are associated with Multiple Choice the current float of a corporation the financial leverage of a company raising capital by issuing new secuirities preferred stock but not common stock

Finance Dec 25, 2020

Flotation costs are associated with

Multiple Choice

  • the current float of a corporation

  • the financial leverage of a company

  • raising capital by issuing new secuirities

  • preferred stock but not common stock

Expert Solution

raising capital by issuing new securities

Flotation costs are paid to investment banks for the raising capital for firms by issuing new securities. The raise the cost of equity.

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