Cost of issue of new shares is known as ........

Principles of Accounting & Financial Management Cost of capital

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Cost of issue of new shares is known as:

Cost of Equity

Cost of debt

Flotation Cost

WACC

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Explanation:

Answer :- Flotation Cost

Flotation costs are costs a company incurs when it issues new stock. Flotation costs make new equity cost more than existing equity. Analysts argue that flotation costs are a one-time expense that should be adjusted out of future cash flows in order to not overstate the cost of capital forever.