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rue or False: The following statement accurately describes how firms make decisions related to issuing new common stock. Taking flotation costs into account will reduce the cost of new common stock.

Respuesta :

Answer: False

Explanation:

Flotation costs are the costs that are incurred by a company whenever the company is issuing new securities. They are fee that are charged by the financial institutions for services such as legal and underwriting services.

Flotation costs are additional costs associated that are incurred when a new common stock is raised.

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