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Privatisation

Cost of issui...

Question

Cost of issuing new shares to the public is known as_________.

A

Cost of Equity

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B

Cost of Capital

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C

Flotation Cost

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D

Marginal Cost of Capital

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Solution

The correct option is C Flotation Cost
Flotation costs are incurred by a publicly traded company when it issues new securities, and includes expenses such as underwriting fees, legal fees & registration fees.

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