Question: Flotation costs for a levered firm should be: Multiple Choice weighted and included in the initial cash flow. totally ignored when internal equity funding is
Flotation costs for a levered firm should be:
Multiple Choice
weighted and included in the initial cash flow.
totally ignored when internal equity funding is utilized.
ignored when analyzing a project because they are a sunk cost.
considered only when two projects are mutually exclusive.
spread over the life of a project thereby reducing the cash flows for each year of the project.
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