The amount raised to finance a project when new securities are issued can be defined as the:

Multiple Choice

• Total value of the new securities issued multiplied by the quantity of 1 minus the flotation cost expressed as a %age of the amount raised.

• Cash needed to fund the project excluding any flotation costs.

• Cash needed to fund the project multiplied by the quantity of 1 minus the flotation cost expressed as a %age.

• Total market value of the new securities minus the flotation cost.

• Outside amount needed for the project divided by the quantity of 1 minus the flotation cost expressed as a %age of the amount raised.