Which of the Following Would NOT Normally Be Considered a "Flotation

question 152

Multiple Choice

Which of the following would NOT normally be considered a "flotation cost"?

• A) underwriter's spread
• B) dividends
• C) legal fees
• D) printing and engraving expenses

---

Definitions:

Effective Interest Rate

The actual rate of interest earned or paid on an investment or loan, accounting for the effect of compounding.

Discounted Interest

The process of reducing the interest rate on a loan, calculated in advance and deducted from the principal amount at the time of lending.

Withdrawal

A psychological or physical retreat from certain situations, interactions, or engagements, often used as a coping mechanism.

Erections

The physiological process where the penis becomes firm, engorged, and enlarged, often in a sexual context.