10. Flotation Costs. For small issues of common stock, the costs of flotation amount to about 15%...
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10. Flotation Costs. "For small issues of common stock, the costs of flotation amount to about 15% of the proceeds. This means that the opportunity cost of external equity capital is about 15 percentage points higher than that of retained earnings." Does this follow? (LO2)
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780073382302
6th Edition
Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus
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