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Basic Question 2 of 2

The textbook prefers to ______ when accounting for flotation costs in equity issuances.

A. incorporate the flotation costs into the cost of capital
B. incorporate the flotation costs as additional cost
C. incorporate the floatation costs in riskiness of the project

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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

explain and demonstrate the correct treatment of flotation costs.

CFA® 2024 Level I Curriculum, Volume 4, Module 33.