Impact of Floatation Costs

AFM Capital Structure and Cost of Capital Free JAIIB Capsule 22 views Updated 20 Sep 2026

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AFM · Capital Structure and Cost of Capital

Issuing new shares or bonds involves underwriting fees, legal costs, and commissions. How do these 'Floatation Costs' mathematically impact the WACC of a new project?

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Issuing new shares or bonds involves underwriting fees, legal costs, and commissions. How do these 'Floatation Costs' mathematically impact the WACC of a new project?

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