When calculating the weighted average flotation cost, the weights should be based on the: O mix of debt and equity that will be used to finance the specific project. O firm's current mix of debt and equity O percentages of internal and external financing that will be used for the project. O average amounts of external capital raised during the past twelve months. O firm's target capital structure.

Question

Business

Kaydence Wang

18 November, 18:03

When calculating the weighted average flotation cost, the weights should be based on the: O mix of debt and equity that will be used to finance the specific project. O firm's current mix of debt and equity O percentages of internal and external financing that will be used for the project. O average amounts of external capital raised during the past twelve months. O firm's target capital structure.

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Salvatore Andersen · Answer 1

Mix of debt and equity that would be used to finance the specific project.

Explanation:

This is the amount of capital that can raised which include examples like issuance of common stock.