Thinking about the definition of the term "flotation costs," should we expect the flotation costs for debt to be significantly lower than those for equity? Why or why not? Please support your answer using supporting information from the chapters in this unit and the course.

What was covered in the chapter.

• Analyze the logic underlying various capital budgeting decision techniques.
• Calculate and use the payback (PB) and discounted payback (DPB) methods for valuing capital investment opportunities.
• Calculate and use the net present value (NPV) method for evaluating capital investment opportunities.
• Calculate and use the internal rate of return (IRR) and the modified internal rate of return (MIRR) methods for evaluating capital investing opportunities.
• Use NPV profiles to reconcile sources of conflict between NPV and IRR methods.
• Compute and use the profitability index (PI)