How do flotation costs affect cost of raising that capital, Financial Management

Assignment Help:

When a company issues new securities, how do flotation costs affect the cost of raising that capital?

When a company issues fresh securities flotation costs, enhance the cost of raising the capital. The company gets a smaller amount of the proceeds from the new issues the greater the flotation costs.

Related Discussions:- How do flotation costs affect cost of raising that capital

Explain economic exposure to exchange risk, How would you explain economic ...

How would you explain economic exposure to exchange risk? Answer: Economic exposure can be illustrated as the opportunity that the firm’s cash flows and so its market value may

Approaches, Briefly discuss the three approaches to the short-term financin...

Briefly discuss the three approaches to the short-term financing problem and provide relevant examples of each?

Indirect-cost pools, 1. Increasing the number of indirect-cost pools is gua...

1. Increasing the number of indirect-cost pools is guaranteed to sizably increase the accuracy of product or service costs.do you agree? Support your anser using examples 2. The

Introduction to financial management, Introduction to financial management:...

Introduction to financial management: Meaning and defecation of the financial management Finance function Scope and content of financial function Functions and

Review of career plans, Review of career plans: career plans, emerging out ...

Review of career plans: career plans, emerging out of career planning exercise, have long term orientation. A career plan is developed based on assumptions about how the environmen

What does weighted average cost of capital, What does the "weight" refer to...

What does the "weight" refer to in the weighted average cost of capital? The weight pass on to in weighted average cost of capital refers to the portion of the total capital in

Replacement Theory, How is the failure Table for assets that fail suddenly ...

How is the failure Table for assets that fail suddenly constructed?

Constructing the binomial interest rate tree, How to calculate the up anh d...

How to calculate the up anh down factor in the binomial interets rate tree

Accounting, Accounting : Many people believe financial management only r...

Accounting : Many people believe financial management only relates to bookkeeping and the establishment of accounting reports which reflect those transactions in the books. Whi

Day count convention, Day count convention is a system used to determ...

Day count convention is a system used to determine the number of days between two coupon dates. It is important in calculating accrued interest and present value

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages