Novation Is the Term Used When a New Party Is

question 94

True/False

Novation is the term used when a new party is substituted for an original party to the contract.

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Definitions:

Flotation Costs

Expenses incurred by a company in issuing new securities, typically including fees for underwriting, legal, registration, and other associated costs.

Debt-to-Assets Ratio

A leverage ratio that calculates the total amount of debt relative to the total amount of assets, indicating how much of the company's assets are funded by debt.

Cost of Equity

The rate of return that a company theoretically pays to its equity investors to compensate for the risk they undertake by investing in the company.

Cost of Equity

The return that investors expect for investing in a company's equity, considered the cost of equity capital.