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Should we expect the flotation costs for debt

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Reference no: EM132186525

Define the term: Flotation Costs

Should we expect the flotation costs for debt to be significantly lower than those for equity? Why or why not?

Please support your answer using supporting information from the chapters in this unit and the course.

Do you agree with the positions taken by your classmates?

Can you provide counterpoints or insight as to why they may want to reconsider their view of expected flotation costs?

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This report is prepared to analyze the rationale behind the flotation cost of debt and equity. The report throw light on why flotation cost differs for debt and equity.

Reference no: EM132186525

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