What is The Meaning of Flotation Cost?
A simple definition of Flotation Cost is: Public companies charge a fee for issuing new bonds, and there are fees such as subscription fees, legal fees and registration fees. Companies should consider the impact of these fees on the amount of capital they may receive from the new issues. The issuance costs, the expected return on equity, the return on dividends, and the company's expected rate of return are all part of the equation that is used to calculate the cost of a company's new capital.
- Floating rate costs a company when issuing new shares.
- Floating costs mean that new capital is more expensive than existing capital.
- Analysts say issuance costs are occasional costs that need to be adjusted to future cash flows so that the value of equity is not permanently reduced.
Cost of issuance of new shares or bonds.
Literal Meanings of Flotation Cost
Meanings of Flotation:
Floating on liquid or gas.
Sentences of Flotation
Growth and movement support ltd. Body shape modified
Meanings of Cost:
Payment (an amount of money) is required before receiving or performing an item or action
Sentences of Cost
The price of each issue of the magazine is 25 2.25
It is your job to discover what that is and to bring it about.
Synonyms of Cost
hire charge, market price, levy, fare, selling price, estimate the price of, asking price, evaluate, be valued at, fetch, toll, tariff, put a figure on, come to, put a price on, charge, value, price, be, be priced at, estimate the cost of, fee, put a value on