Question
How do ‘Floatation costs’ affect the choice of capital structure of a company? State
Solution
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.
Is there an error in this question or solution?
Solution How Do ‘Floatation Costs’ Affect the Choice of Capital Structure of a Company? State Concept: Concept of Capital Structure.
