Company PQR is considering issuing new equity at a cost of 12%. The company's investment bank charges

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Company PQR is considering issuing new equity at a cost of 12%. The company's investment bank charges a 5% underwriting fee on the gross proceeds. Calculate the flotation cost as a percentage of the net proceeds.

Related Book For answer-question

Advanced Financial Accounting

ISBN: 978-0137030385

6th edition

Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay

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Posted Date: Apr 06, 2024 02:28 AM

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Company PQR is considering issuing new equity at a cost of 12%. The company's investment bank charges

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Flotation cost refers to the costs incurred by a company when issuing new secur... View the full answer

Advanced Financial Accounting

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