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    Flotation Costs and Issue Size

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    Question: Your firm needs to raise $10 million. Assuming that flotation costs are expected to be $15 per share and that the market price of the stock is $120, how many shares would have to be issued? What is the dollar size of the issue?

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    Solution Preview

    Flotation costs are the costs associated with the issuance of new securities. Flotation costs include both the underwriting spread and the costs ...

    Solution Summary

    This solution briefly discusses flotation costs and provides calculations for the number of shares issued and dollar size of the issue.