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It is understood that firms use varied sources of funding. However, what if a firm funds a project by issuing externally generated new capital, additional
It is understood that firms use varied sources of funding. However, what if a firm funds a project by issuing externally generated new capital, additional stock, bonds, etc. Which of the following costs does the firm incur? The firm has to pay the costs of printing the new stock or bond certificates. The firm has to pay commissions to the underwriters helping the firm to sell the stocks and bonds. The firm has to pay government registration fees, and other associated costs. All of these choices are costs incurred by the firm.
It is understood that firms use varied sources of funding. However, what if a firm funds a project by issuing externally generated new capital, additional stock, bonds, etc. Which of the following costs does the firm incur?
The firm has to pay the costs of printing the new stock or bond certificates.
The firm has to pay commissions to the underwriters helping the firm to sell the stocks and bonds.
The firm has to pay government registration fees, and other associated costs.
All of these choices are costs incurred by the firm.
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