Which of the following refers to the cos

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Target Exam

CUET

Subject

Entrepreneurship

Chapter

Resource Mobilisation

Question:

Which of the following refers to the cost that a company incurs when it makes a new issue of either stock or bonds?

Options:

Fixed cost

Cost of capital

Floatation cost

Opportunity cost

Correct Answer:

Floatation cost

Explanation:

Floatation cost refers to the cost that a company incurs when it makes a new issue of either stock or bonds