Publicly Placed Bonds Do Not Typically Involve Flotation Costs Due

question 54

True/False

Publicly placed bonds do not typically involve flotation costs due to the availability of publicly placed funds,but privately placed debt typically does involve flotation costs because of the difficulty involved in raising private funds.

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Definitions:

Intrinsic Value

The actual, fundamental worth of a security, as determined through fundamental analysis, ignoring market value.

Product Life Cycles

The stages through which goods and services move from conception to termination, typically including development, introduction, growth, maturity, and decline.

FCFE

Available Cash for Equity Shareholders, an indicator of the cash surplus for a company's equity shareholders after settling all costs, reinvestments, and liabilities.

Per Share FCFE

Free Cash Flow to Equity per share, indicating the amount of cash available to equity shareholders per share after expenses, reinvestment, and debt payments.