Question: Define the term: Flotation Costs. Should we expect the flotation costs for debt to be significantly lower than those for equity? Why or why not?

Define the term: Flotation Costs.

Should we expect the flotation costs for debt to be significantly lower than those for equity? Why or why not? Please support your answer using supporting information from the chapters in this unit and the course. Do you agree with the positions taken by your classmates? Can you provide counterpoints or insight as to why they may want to reconsider their view of expected flotation costs?

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