Financial management????
This query is : Resolved
meet gupta
(Querist)
15 July 2013
given that,
face value of share = rs.100
issue price of share = rs.120
and flotation cost is 5%.
Q.on which amount flotation cost is applied 100(FV) or 120(IP)??????
pls help
face value of share = rs.100
issue price of share = rs.120
and flotation cost is 5%.
Q.on which amount flotation cost is applied 100(FV) or 120(IP)??????
pls help
Ashish Kukreja
(Expert)
16 July 2013
Flotation cost is to be applied on Issue Price..Flotation cost per share will be 5% of Rs.120 = Rs.6 per share
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