Flotation costs

Related BrainMass Solutions

• Flotation Costs and Issue Size

  Flotation costs are the costs associated with the issuance of new securities. Flotation costs include both the underwriting spread and the costs incurred by the issuing company from the offering.

• Flotation Costs

  due to flotation cost The true initial cost = Amount needed/(1-Flotation cost) = 30/(1-7.9%) = 32.57 million The solution explains how to calculate the flotation costs relating to raising capital.

• Cost of preferred stock; cost after flotation costs

  In addition, flotation costs of $2.50 per share must be paid. a. Calculate the cost of the preferred stock. b. If the firm sells the preferred stock with a 10% annual dividend and nets $90.00 after flotation costs, what is its cost?

• Bond Refunding Analysis for Mullet Technologies

  expensed = $833,333.33 Remaining flotation costs to expense = $4,166,666.67 Tax savings from old flotation costs = $1,666,666.67 The remaining flotation costs are to be expensed Additional interest on old issue after tax = $450,000.00

• Long Term Financial Management

  costs into account?

• Cost of preferred stock including flotation costs

  The company will sell 1 million new shares at the going market rate and will have to pay 5% in flotation costs. What is the cost of the preferred stock, including flotation?

• Cost of preferred stocks

  In addition, flotation costs of $2.50 per share must be paid 1. Calculate the cost of the preferred stock 2. If the firm sells the preferred stock with a 10% annual dividend and nets $90.00 after flotation costs, what is its cost?

• Moonscape Initial Public Offering and Floatation Costs

  Thus flotation costs for Moonscape are lower than is typical for IPOs of this size The solution discusses whether flotation costs for Moonscape were higher or lower than is typical for IPOs.

• What was the flotation cost as a percentage of the funds raised

  The expert examines what the flotation costs as a percentage of the funds raised are determined.