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Financial Management

Why we don’t minus flotation cost from Kre, but from Ke ?

Sushmita Chowdhury

CA Inter

★ 710

23-Mar-23 19:59

182

Answers (3)

Because we don't incur any floatation costs for retained earnings, but for issue of equity shares, floatation costs are incurred.

Varshaa M

CA Final

★ 33K+

23-Mar-23 20:12

Retained earnings are created from surplus, you don't have spend any money to get it. Hence no floatation cost.

Angel Maria Varghese

CA Final

★ 8K+

23-Mar-23 22:22

Angel Maria Varghese

Retained earnings are created from surplus, you don't have spend any money to get it. Hence no floatation cost.

Thank u

Thread Starter

Sushmita Chowdhury

CA Inter

★ 710

24-Mar-23 10:35

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