Financial management????
This query is : Resolved
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
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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