Which of the following is the correct expression for the amount of common stock or debt that a company needs to issue after taking into account the flotation costs??

A. Amount of issue = (Net proceeds - Other flotation costs in dollars) / (1 - Percentage flotation costs)?
B. ?Amount of issue = (Net proceeds + Other flotation costs in dollars) / (1 - Percentage flotation costs)
C. ?Amount of issue = (Net proceeds + Other flotation costs in dollars) / (1 + Percentage flotation costs)
D. ?Amount of issue = (Net proceeds - Other flotation costs in dollars) / (1 + Percentage flotation costs)
E. ?Amount of issue = (Net proceeds + Other flotation costs in dollars) × (1 - Percentage flotation costs)


Answer: B

Business

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