Question
Flotation costs will Blank______ the value of the stock.
Multiple choice question.
decrease
not affect
increase
Multiple choice question.
decrease
not affect
increase
Answers
GPT-4o mini
Flotation costs will **decrease** the value of the stock.
Flotation costs represent the costs incurred by a company when issuing new securities, which reduces the net proceeds received and can lower the overall value of the stock to investors.
Flotation costs represent the costs incurred by a company when issuing new securities, which reduces the net proceeds received and can lower the overall value of the stock to investors.