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


Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

710

23-Mar-23 19:59

196

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

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

Angel Maria Varghese

CA Final

8K+

23-Mar-23 22:22

MCQs Now