Which of the Following Equations Is Used to Compute the Dollar

question 32

Essay

Which of the following equations is used to compute the dollar amount of common stock or debt that a company must issue after taking into account the flotation costs?
a. Amount of issue $= ($ Net proceeds - Other flotation costs in dollars $) / ( 1 -$ Flotation costs in decimal form $)$
b. Amount of issue $= ($ Net proceeds + Other flotation costs in dollars $) / ( 1 -$ Flotation costs in decimal form $)$
c. Amount of issue $= ($ Net proceeds + Other flotation costs in dollars $) / ( 1 +$ Flotation costs in decimal form $)$
d. Amount of issue $= ($ Net proceeds - Other flotation costs in dollars $) \times ( 1 +$ Flotation costs in decimal form $)$
e. Amount of issue $= ($ Net proceeds + Other flotation costs in dollars $) \times ( 1 -$ Flotation costs in decimal form $)$

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Definitions:

American Psychological Association

A professional organization representing psychologists in the United States, dedicated to advancing psychology as a science, profession, and means of promoting health, education, and human welfare.

Largest Organisation

The biggest or most extensive entity in terms of structure, scope, or membership within a specific context or sector.

Introspection

The examination of one's own conscious thoughts and feelings, often used as a method in psychological studies.

Soft Drink

A non-alcoholic, flavored, and often carbonated beverage.