The Amount Raised to Finance a Project When New Securities

question 84

Multiple Choice

The amount raised to finance a project when new securities are issued can be defined as the:

• A) Total value of the new securities issued multiplied by the quantity of 1 minus the flotation cost expressed as a %age of the amount raised.
• B) Cash needed to fund the project excluding any flotation costs.
• C) Cash needed to fund the project multiplied by the quantity of 1 minus the flotation cost expressed as a %age.
• D) Total market value of the new securities minus the flotation cost.
• E) Outside amount needed for the project divided by the quantity of 1 minus the flotation cost expressed as a %age of the amount raised.