हिंदी

How Do ‘Floatation Costs’ Affect the Choice of Capital Structure of a Company? State

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प्रश्न

How do ‘Floatation costs’ affect the choice of capital structure of a company? State

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उत्तर

Floatation cost refers to the cost of raising funds. Higher the flotation cost of a particular source, lower is its preference in the capital structure and vice versa.

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