单选题
编号：2686224
1. A company's operations analyst is evaluating a plant expansion project that is likely to be financed in part by issuing new common equity. Flotation costs are expected to be 4% of the amount of new equity capital raised. The most appropriate way for the analyst to treat the flotation costs is to:
- A.Ignore them,because flotation costs for common equity are likely to be nonmaterial.
- B.Estimate the cost of equity capital based on a share price 4% less than the current price.
- C.Determine the flotation cost attributable to this project and treat it as part of the project's initial cash outflow.