Which of the following equations is used to compute the dollar amount

Question

Which of the following equations is used to compute the dollar amount of common stock or debt that a company must issue after taking into account the flotation costs?

a. Amount of issue = (Net proceeds Other flotation costs in dollars) / (1 Flotation costs in decimal form)

b. Amount of issue = (Net proceeds + Other flotation costs in dollars) / (1 Flotation costs in decimal form)

c. Amount of issue = (Net proceeds + Other flotation costs in dollars) / (1 + Flotation costs in decimal form)

d. Amount of issue = (Net proceeds Other flotation costs in dollars) (1 + Flotation costs in decimal form)

e. Amount of issue = (Net proceeds + Other flotation costs in dollars) (1 Flotation costs in decimal form)

Answer

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