How Do I Calculate Flotation Cost?

Answer

Record any fees associated with registering the security that is being sold. Calculate all fees incurred from the services of professionals, such as investment bankers, underwriters and attorneys. Record any state or federal expenses associated with selling the security. Add the totals from Steps 1 through 3 to determine the total flotation cost. Report the flotation costs in terms of percentage if necessary.
Q&A Related to "How Do I Calculate Flotation Cost?"
1. Record any fees associated with registering the security that is being sold. 2. Calculate all fees incurred from the services of professionals, such as investment bankers, underwriters
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Your company is considering a project that will cost $1 million.The project will generate after-tax cash flows of $250,000 per year for 7 years. The WACC is 15% and the firm's target
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$56 million x 0.65 = 36.4 million common stock x .10 = 3.64 million flotation costs. $56 million x 0.30 = 16.8 million debt x .08 = 1.344 million flotation costs. $56 million x 0.05
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A good way to calculate food that you would buy often, I would suggest going to your normal grocery store. Buy like normal for a month. If it is higher than you expected, you may
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