A Montreal fiRm Faces Direct Costs of 8% of the Amount

question 30

Multiple Choice

A Montreal firm faces direct costs of 8% of the amount of cash raised for new security sales. If $6 million needs to be raised for a new project, what is the total dollars of flotation costs?

• A) $0
• B) $480,000
• C) $521,739
• D) $542,726
• E) $750,000

---

Definitions:

Supply Chain

A network of businesses and activities involved in the creation and delivery of a product or service from the raw material stage through to the end customer.

Scope of Strategic Fit

Concerns the alignment between a company's operational capabilities and its strategic goals, ensuring that operations are geared towards achieving long-term objectives.

Supply Chain

A series of steps involved in getting a product or service from the supplier to the customer, encompassing production, handling, storage, and distribution.

Intercompany Scope

Relates to operations or activities that occur between or involve more than one company within the same corporate structure.