Simplify the Expression

question 227

Multiple Choice

Simplify the expression. Do not assume that the variables represent positive numbers.

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Definitions:

Flotation Costs

Expenses incurred by a company in issuing new securities, including fees to underwriters, legal fees, and registration fees.

Rights Offering

A method by which a company raises additional capital by giving existing shareholders the right to buy new shares at a discount.

Subscription Price

The fee that investors pay when subscribing to a new issue of securities.