Question: The flotation cost for a company is computed as: Mutuple Choice a weighted average based on the book values of the company's outstanding securities .

The flotation cost for a company is computed as:
Mutuple Choice
a weighted average based on the book values of the company's outstanding securities.
the arithmetic average of the flotation costs of both debt and equity.
one-half of the flotation cost of debt plus one-half of the flotation cost of equity.
the weighted average of the flotation costs associated with each form of financing.
the geometric average of the flotation costs associated with each form of financing.
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The flotation cost for a company is computed as:

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