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Flotation Costs Are Incorporated into the APV Framework by

Question 45

Multiple Choice

Flotation costs are incorporated into the APV framework by


A) adding them to the all-equity value of the project.
B) subtracting them from the all-equity value of the project.
C) incorporating them into the WACC.
D) Flotation costs should not be included into APV.

Correct Answer:

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